North America Real Time Payment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Real-Time Payment Market is segmented by Type (P2P, P2B), and by Country (US, and Canada).

Market Snapshot

North America Real-Time Payment Market Size
Study Period: 2022-2027
Base Year: 2021
CAGR: 29.9 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

North America Real-Time Payment Market is expected to register a 29.9% CAGR in the forecasted period. Real-time payment systems are proliferating worldwide due to increased consumer demand for speed and convenience. There is a continued shift away from cash due to card transactions' strong performance in combination with payment solutions enabled by innovation (for example, real-time payments and mobile wallets) and regulation (for example, the second Payment Services Directive, better known as PSD2 and open banking).

  • The growing adoption of smart devices and booming online retail commerce drives the rapid adoption of real-time payments. While the private sector is trying to promote commerce, governments tend to lag; yet there is the increased usage of real-time payments that could increase tax collection and enhance fraud prevention.
  • Real-time payments are also helping in modernizing bank account-based payments. Compared to legacy bank transfers, RTP offers added benefits, such as messaging capabilities, enhanced data, increased security, and real-time funds availability. These systems provide significant benefits to all stakeholders in the ecosystem. The emphasis on data and messaging capabilities, in addition to the real-time settlement, has positioned the US RTP system as the most advanced system in the world.
  • The rising tide of immediate payments reflects growing consumer demand for real-time transactions, driven due to the ubiquity of smartphones and other connected devices, which have catalyzed consumer expectations for immediacy.
  • There are many regulations in some developed countries to support real-time payments. This benefits consumers and the government, which can efficiently trace activity and help increase the overall economy's fluidity. For instance, The Federal Reserve Bank and the National Automated Clearing House Association (NACHA) are working on a roadmap and incentives to accelerate real-time payments in the United States.
  • Contactless payment use and competition rose as a result of COVID-19. With the outbreak, many people and businesses needed access to immediate financing. So it is safe to say that the pandemic was a major impetus behind real-time payments in North America. Real-time payment services are becoming more prevalent in the United States and Canada. For instance, The Clearing House's RTP network is the most well-known example of a real-time payments network in the United States. More than 110 businesses are enrolled in the Federal Reserve's FedNow Pilot Program, which will deploy a real-time network in 2023.

Scope of the Report

Real-time payments are instant or immediate payments and are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions that are available 24/7/365. Immediate payments enable businesses and consumers to make and receive payments in real-time, providing convenience, speed, and faster availability of funds.

North America Real-Time Payment Market is segmented by Type (P2P, P2B) and Country (the US and Canada).

By Type of Payment
P2P
P2B
North America
United States
Canada

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increased Smartphone Penetration to drive the Market

  • In North America, the Next G Alliance has started working on the 6G roadmap and 'Green G' (focused on achieving energy efficiency).
  • As of July 2021 - Researchers at The University of Texas at Austin are launching [email protected], a new research center to build the framework for 6G, the next generation of wireless technology, in collaboration with industry titans such as Samsung, NVIDIA, and others. Samsung, AT&T, NVIDIA, Qualcomm, and InterDigital, founding [email protected] affiliates, will sponsor at least two projects at the center for three years. The firms' researchers will collaborate with UT teachers and students to develop wireless-specific machine learning algorithms, enhanced sensing technologies, and core networking breakthroughs that will form the foundation for 6G.
  • As the region moves into a new era of electronics powered by 5G and, eventually, 6G, MIT and Ericsson are working together on two research projects to help construct the new network architecture required to enable the truly transformative use cases that the next generation of mobile networks will offer. Ericsson and MIT will collaborate on two large research projects to develop cutting-edge hardware for next-generation 5G and 6G networks.
  • According to GSMA 2021 Mobility Report, there will be 272 million 5G connections in North America. This massive increase in the 5G connections will drive the studied market in the region.
North America Real-Time Payment Market Report

Ease of Convenience will play a major role in adoption of Real Time Payment

  • The demand for real-time payments market in the North American region is highly contributed by the growing awareness regarding the technology in the United States. Since the first wave of early adoption went live with The Clearing House (TCH)’s RTP network, many other large banks in the United States have signed on for real-time payment, with hundreds of smaller institutions slated to follow.
  • As the merchants and prominent institutions recognize the benefits of Real-Time Payments (RTP) in the United States, the adoption will rapidly boost substantially. That is going to be a significant driver in new services. Merchants and billers like utilities and health insurers will begin promoting real-time payment methods.
  • With no governmental mandate for real-time payments (RTPs) in the United States, the adoption has been slow and limited in application. However, according to Early Warning, P2P payments are now accessible to one in two bank account holders through Zelle. Consumer demand has grown because offering Zelle is now table stakes for financial institutions to compete against PayPal’s Venmo.
  • Waterhouse mentioned that in terms of TCH’s initiatives in getting banks on board the ongoing effort to make RTP ubiquitous across the entirety of the US financial services ecosystem, traction might have thus far been slower than initially thought. Achieving ubiquity across the 12,000 or so FIs in the US is a two-step process that includes connecting the core banking systems of these FIs to the TCH network and then getting the banks to make it a part of their service offering.
  • The country has been witnessing an increase in customer interest in real-time payments. According to research by Accelerating The Real-Time Payments Demand Curve Report, a PYMNTS and Alacriti collaboration, 36.2% of consumers mentioned that they had used real-time payments, even though the options they leverage either do not support real-time capabilities or are not conducted in real-time. This indicates that many payors consider their transactions have been completed and their obligations have been fulfilled the moment they receive notifications that payments went through, even though some methods, even digital ones, would take days to reach recipients and settle in their accounts.
North America Real-Time Payment Market Analysis

Competitive Landscape

The market is fragmented owing to the presence of numerous players operating in the market. The companies are involved in various strategies such as product innovation; service providers are forming alliances.

  • According to a new global study conducted by payments processor ACI Worldwide and the Centre for Economic and Business Research, the United States falls behind India, Brazil, China, Thailand, and South Korea in driving businesses and consumers to adopt this speedier sort of payment system.
  • In March 2021 - After meeting the European Commission's criteria, Mastercard completed the acquisition of a majority share in Nets' Corporate Services division. According to the payments network, the contract provides a "broader set" of account-to-account capabilities. Clearing, settlement, bill payment, and e-invoicing are among the functions linked to immediate payment infrastructure.

Recent Development

  • The Federal Reserve of the United States is working on the FedNowSM instant payments platform, which is set to launch in 2023/2024. It will allow payers to interact with a larger set of payees, including those at different financial institutions, and is billed as an "interbank speedier payment system."

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Evolution of the payments landscape in the country

    4. 4.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 4.5 Impact of COVID-19 on the payments market in the country

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Smartphone Penetration

      2. 5.1.2 Falling Reliance on Traditional Banking

      3. 5.1.3 Ease of Convenience

    2. 5.2 Market Challenges

      1. 5.2.1 Payment Fraud

      2. 5.2.2 Existing Dependence on Cash

    3. 5.3 Market Opportunities

      1. 5.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners

    4. 5.4 Key Regulations and Standards in the Digital Payments Industry 

      1. 5.4.1 Regulatory Landscape Across the World

      2. 5.4.2 Business Models with Potential Regulatory Roadblocks

      3. 5.4.3 Scope for Development in Lieu of Evolving Business Landscape 

    5. 5.5 Analysis of major case studies and use-cases 

  6. 6. Market Segmentation

    1. 6.1 By Type of Payment

      1. 6.1.1 P2P

      2. 6.1.2 P2B

    2. 6.2 North America

      1. 6.2.1 United States

      2. 6.2.2 Canada

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 ACI Worldwide Inc.​

    2. 7.2 Fiserv Inc.​

    3. 7.3 Paypal Holdings Inc.​

    4. 7.4 Mastercard Inc.​

    5. 7.5 FIS Global​

    6. 7.6 VISA Inc.​

    7. 7.7 Apple Inc.​

    8. 7.8 Alipay (Ant Financials)​

    9. 7.9 SIA SpA​

    10. 7.10 Finastra​

  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The North America Real Time Payment Market market is studied from 2022 - 2027.

The North America Real Time Payment Market is growing at a CAGR of 29.9% over the next 5 years.

ACI Worldwide, Fiserv, PayPal, Mastercard, FIS are the major companies operating in North America Real Time Payment Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!