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North America Real Time Payment Market Size (2024 - 2029)

The North America real-time payment market is experiencing significant growth, driven by increasing consumer demand for speed and convenience in transactions. The shift from cash to digital payment solutions, such as mobile wallets and real-time payments, is being facilitated by technological innovations and regulatory support. The widespread adoption of smart devices and the expansion of online retail are further propelling the market. Real-time payment systems offer enhanced security, messaging capabilities, and immediate fund availability, making them attractive to consumers and businesses alike. Regulatory frameworks in developed countries are also supporting the growth of these payment systems, which are becoming integral to the economic landscape in North America.

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Market Size of North America Real Time Payment Industry

North America Real-Time Payment Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 29.90 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

North America Real Time Payment Market Analysis

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.

North America Real Time Payment Industry Segmentation

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
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North America Real Time Payment Market Size Summary

The North American real-time payment market is experiencing significant growth, driven by the increasing consumer demand for speed and convenience in transactions. The shift from cash to card transactions, coupled with innovations like mobile wallets and regulatory frameworks such as PSD2 and open banking, is propelling the adoption of real-time payment systems. The proliferation of smart devices and the surge in online retail commerce further accelerate this trend. Real-time payments offer advantages over traditional bank transfers, including enhanced data, security, and immediate fund availability, making them appealing to all stakeholders. The emphasis on data and messaging capabilities has positioned the US RTP system as a leader globally. Regulatory support in developed countries, along with initiatives from entities like The Federal Reserve and NACHA, is fostering a conducive environment for the expansion of real-time payment systems, which are also seen as tools for improving tax collection and fraud prevention.

In the United States and Canada, the adoption of real-time payment services is gaining momentum, with networks like The Clearing House's RTP and the upcoming FedNow platform leading the charge. The COVID-19 pandemic has acted as a catalyst, increasing the demand for immediate financing solutions. Despite the absence of a governmental mandate, consumer interest in real-time payments is rising, with financial institutions recognizing the need to offer such services to remain competitive. The market is characterized by a fragmented landscape with numerous players engaging in product innovation and strategic alliances. While the US lags behind countries like India and China in adopting real-time payment systems, efforts are underway to enhance the infrastructure and service offerings, aiming for broader adoption across the financial services ecosystem.

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North America Real Time Payment Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the country

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 1.5 Impact of COVID-19 on the payments market in the country

  2. 2. Market Segmentation

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

    2. 2.2 North America

      1. 2.2.1 United States

      2. 2.2.2 Canada

North America Real Time Payment Market Size FAQs

The North America Real Time Payment Market is projected to register a CAGR of 29.90% during the forecast period (2024-2029)

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

North America Real Time Payment Report Snapshots

North America Real Time Payment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)