Real-Time Payments: the Enterprise Guide to a Faster, Smarter and More Secure Way to Send and Receive Funds

The Future of Global Transactions 

Real-Time Payments (RTP) are quickly gaining global prominence, addressing the complexities and high costs associated with traditional global payment methods. This shift is driven by the need to overcome the challenges of errors, delays and increased risks of international transactions. Businesses worldwide are increasingly adopting RTP as a solution to expedite their payment processes, with governments often leading the development and implementation.

Rapyd’s research, encompassing insights from 700 businesses across seven markets, highlights a strong readiness for accelerated payment solutions like RTP. This transition is fueled by demands for speed and convenience in financial transactions, making RTP the increasingly preferred choice for businesses and consumers alike. As the world gravitates towards a more interconnected financial future, real-time payments stand out as an indispensable tool, paving the way for seamless instant transactions globally.

What Are Real-Time Payments?

Real-time payments are transactions that are initiated, cleared, and settled in seconds.

Key Benefits 

1. Instant 24/7/365 Payments 

Eliminating delays enhances transparency and empowers consumers, banks, and businesses to better manage their finances.

2. Guaranteed Sufficient Funds

RTP offers immediate confirmation of funds and is nearly irreversible, which minimizes the risk of fraud.

3. Better Messaging and Notifications 

Messages and payments are sent in a global messaging standard format, enabling businesses to automate payment reconciliation.

Real-Time Payments Growth

More than 70 countries on six continents support real-time payments. By 2027, they will be almost 30% of all electronic payments worldwide.

• 195B Global Transactions 
• Growing 63% YoY 
• Projected to reach 511.7B by 2027¹

By 2027, real-time payments will be almost 30% of all electronic payments worldwide.

The Top 5 Real-Time Payments Markets Globally

These countries are ahead of the curve and could present exciting growth opportunities.

• India 89.5B | 76.8% YoY growth
• Brazil 29.2B | 228.9% YoY growth
• China 17.6B | .9% YoY growth
• Thailand 16.5B | 63.4% YoY growth
• South Korea 8B | 9.6% YoY growth

Governments Adopt Real-Time Payments, Enhancing Global Interconnectivity

Governments around the world are leading the implementation of real-time payments and making it easier for countries to connect with each other. As locally-regulated real-time payment networks roll out globally, money will move much faster domestically and cross-border. Governments are increasingly backing bilateral cross-border partnerships to promote seamless commerce.

Bilateral and multilateral connections between real-time payments systems of many countries already exist to expedite cross-border payments. One example is the PayNow-UPI linkage between Singapore and India. The linkage provides customers with a safe, simple and cost-effective way to make cross-border transfers.

ACH vs RTP vs Wires

Key Use Cases

Both businesses and consumers benefit from real-time payments. For consumers, RTP expands the peer-to-peer (P2P) payment options offered by financial institutions. Businesses are increasingly recognising the transformative potential of real-time payments. Beyond the speed benefits, they enjoy reduced costs, enhanced money management, greater visibility and reduced risks from currency fluctuations. 

• Business Use Cases
  -Pay for goods or services
  -Disburse personal loans
  -Send insurance claims

• Consumer Use Cases
  -Pay bills, e.g. utilities, water, electricity
  -Peer-to-peer money transfers
  -Tax payments

• Other Use Cases
  -Government agency payments e.g. unemployment benefits
  -Disaster relief payments
  -Payment of government fines and fees

The Impact of Real-Time Payments on Global Commerce

Speed of Receiving Payments is Key for Global Commerce

Transacting across borders requires businesses to accept and send payments in many currencies and methods. This complexity can introduce errors, delays and increased risk. Businesses are looking for ways to speed up payments. 

Global businesses want the benefits of fast payments. If they aren’t already using a real-time payment system, they are making it a priority in the near future. 

Businesses find that there are many advantages to real-time payments. Beyond speed, businesses gain visibility and insights into payment status, control over timing and enhanced cash flow. All together, they improve money management significantly. 

1. Representing a compound annual growth rate (CAGR) of 21.3%
2. Costs can be up to $5 for same-day ACH
3. Especially in the US