Global Instant Payment Market - 2022-2029

Global Instant Payment Market - 2022-2029

Market Overview

Instant Payment Market reached US$ YY million in 2021 and is expected to record significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 23.30% during the forecast period (2022-2029). Instant payment is a way of transferring money and processing payments that allows for the almost immediate transfer of funds between bank accounts instead of the more customary one to three business days.

Due to the rising need for faster and more reliable transactions, many nations have established immediate payment systems and many instant payment systems and platforms are now under development worldwide. In some countries, it is possible to transmit fast payments by mobile phone, providing the same speed and convenience as cash, such as splitting a dinner bill with coworkers or lending money to a friend or relative.

Market Dynamics

Though the user-friendly experience and less expensive transactions offered by instant payment drive the market, the associated security risks limit the market's growth.

Less expensive and user-friendly transactions

Instant payments have swiftly evolved into a smooth, quick and simple payment method. The massive technological revolution has proved that electronic payments have created several opportunities for customers and businesses to grow more swiftly. Instant payments have witnessed a sudden revolution due to ongoing technical advancements, eliminating the need to visit banks regularly to deposit and withdraw money.

Electronic payment provides more user-friendly experiences, such as improved client convenience. Transparency is essential when it comes to payments. It is vital to preserve transaction transparency when processing payments via digital media. Electronic payments automatically keep a record of the payment data and payment information is supplied ahead of time, eliminating the possibility of confusion. As a result, fast payments' less priced and more user-friendly transactions could be a significant industry driver.

Security Issues

There are still a few people worldwide who use older versions of iOS and Android. It can lead to a variety of security risks. The gadgets do not support the most recent security technology, attracting hackers and scammers for abuse and assault. Further, even if the software is secure, the gadget may not satisfy the standards, giving security fundamentals. As a result, the security risks involved with instant payments are the worst market restraints that limit the market’s growth.

COVID-19 Impact Analysis

The COVID-19 outbreak pushed banks and customers to react swiftly to physical interface restrictions. As a result, bank customers' instant payment adoption has quickened. Many have hailed this as a seismic shift, with most assuming that digital natives and huge national banks would emerge as victors, owing to their widespread investment in digital enablement. While significant, the shift to instant digital payments has been significantly less dramatic than most predicted. Banks have kept at least part of their branches open while reducing branch staffing and hours and limiting the number of customers admitted. Branch transaction volumes have decreased, albeit only by 30% to 50% in some cases. Compared to most retail categories (excluding groceries), this decrease is significant.

As a result, the pandemic-driven digital acceleration will assist banks and other financial institutions in lower costs and providing a better customer experience, resulting in improved Net Promoter scores and increased customer lifetime value. As a result, it is best to conclude that the effect of the COVID-19 pandemic on the global instant payment market is extremely positive. Further, the respective market will continue the pace of growth even after the pandemic subsides due to the paradigm shift instant payment has brought into people's life.

Segment Analysis

The global instant payment market is classified based on nature of payment, services, deployment modes, enterprise size, end-user and region.

The technological advancements and high security offered by instant payments allow the BFSI segment to dominate the end-user segment

The banking and financial services industries have been changed by rising technological innovation. Using immediate payment technologies has simplified banking and reduced bank transaction and service costs. Instant payment systems enable money transfers between different banks from one bank account to another. Customers benefit from high-security safeguards that prevent fraudulent transactions and financial loss. Many countries have established national instant payment systems to make financial transactions easier.

When the Danish central bank established MobilePay, it was one of the first countries to launch a national quick payment system. Many other countries have followed their national rapid payment systems in recent years. In 2010, India introduced the immediate payment service (IMPS). In 2016, India launched the mobile-based unified payments interface (UPI). Governments, central banks and commercial banks continually consult to improve, expand and streamline the immediate payment system.

Geographical Analysis

Due to robust economic growth, urbanization and industrialization, Asia-Pacific dominates the instant payment market’s regional segment.

The Asia-Pacific region is seeing fast economic growth and industrialization. The spread of smartphones and low-cost internet connections coincided with the rise of formal banking services in the region's emerging countries. Many first-time buyers avoided credit and debit cards favoring rapid digital payment options.

Instant payment systems have been tremendously useful to all main players in emerging countries. Banks might reduce transaction costs, while central banks and governments could employ fast payment systems to extend formal banking services. With robust economic growth, urbanization and industrialization rates, Asia-need Pacific's for fast payments across multiple industrial verticals is likely to rise dramatically in the coming years.

Competitive Landscape

The instant payment market is quite active regarding the number and scope of global and local developers. The industry has been described as fragmented due to multiple service providers and developers such as ACI Worldwide, FIS, Fiserv, Mastercard, Worldline, PayPal, Visa, Ant Financial, INTELLIGENT PAYMENTS and Tmenos. Mergers, product launches, acquisitions, investments and partnerships are common market strategies employed by major market players to obtain a competitive advantage and boost their reputation.

PayPal

Overview: PayPal is a U.S.-based multinational company that offers financial technology products and services. PayPal offers instant online money transfer services for individual consumers. It also acts as a facilitator for online payments for various multinational companies. PayPal operates in all major global markets such as U.S., India, UK, Germany, France and Japan. The company is expanding its operations in developing countries of Asia-Pacific and Africa, where it is currently negotiating terms of service with various central banks. PayPal’s main operations center is in La Vista, Nevada, U.S.

Product Portfolio:

• Instant payments with PayPal: PayPal's fast payment service provides benefits such as 24/7 fraud prevention and the ability to pay for services without providing bank card information. Furthermore, all financial transactions are encrypted using advanced data encryption technology and the payment system is bilingual and available in most nations globally, including the mobile app.

Key Development:

• PayPal and Venmo raised their immediate transfer fees for American customers and businesses on April 21, 2022. Customers can pay a charge to rapidly transfer their money to a bank account or debit card. Users must pay 1.75 percent of the transfer amount for personal PayPal accounts and consumer and business profiles on Venmo, with a minimum cost of $0.25 and a maximum price of $25.

Why Purchase the Report?
• To visualize the global instant payment market segmentation based on the nature of payment, services, deployment modes, enterprise size, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global instant payment market by analyzing trends and co-development.
• Excel data sheet with numerous data points of instant payment market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global instant payment market report would provide approximately 77 tables, 77 figures and almost 195 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies