United States Real Time Payments Market Size (2024 - 2029)

US Real Time Payments Market Analysis

The United States real-time payments market is expected to register a CAGR of 10.12% during the forecast period (2022 - 2027). The reason for such change is the growing adoption of the e-commerce economy and online transactions in the United States. For instance, according to US Census Bureau, the U.S. retail e-commerce sales October to December 2021, amounted for USD 219 billion dollars, marking a 1.7 % increase compared to the previous quarter.

• Surging smartphone penetration across the country and rising customer expectation are expected to support market growth in the long run. The rising expectation of individuals from smartphones to make a payment from anywhere and at any time, including on weekends and public holidays, will bolster market demand. In addition, the increasing demand for quicker payment settlements and rising investments from government and financial institutes to support the adoption of real-time payment solutions are anticipated to accelerate the market's growth.
• The dependence on traditional banking has fallen dramatically in the past, as customers demand more flexibility and convenient ways to make payments. The existing banking infrastructure fails to cope with the payment frequency. The emergence of new fin-tech payment providers and secure gateways has enhanced the real-time payments market.
• Increase efficiencies in the payments system and ease of convenience, particularly where they displace high-cost instruments such as cheques. Real-time payments can also release money locked up in the financial system and boost competition to incorporate more new features.
• Security concerns in real-time payment and payment frauds are some of the factors that might affect the market adversely. It can cause uneasiness amongst come users and thus, restricts the adoption of the real-time payment technology in the future.
• Also, the COVID-19 played a massive role in this shift; the government got the opportunity to expand the scope of real-time payment methods and change consumer behaviors, which further supported the market growth.

US Real Time Payments Industry Segmentation

Real-time payments, or RTP, are payments that are begun and settled nearly immediately. It is the digital infrastructure that facilitates real-time payments. The real-time payment networks provide 24x7x365 access, which means they are always online to process transfers at any given day or time.