Market Trends of North America Real Time Payment Industry
This section covers the major market trends shaping the North America Real Time Payment Market according to our research experts:
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 6G@UT, 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 6G@UT 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.
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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.
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