Omdia: payment industry to invest USD 3.1 bln in real-time payments in 2023

Monday 5 June 2023 11:34 CET | News

Payment issuers and acquirers are directing their investments towards real-time payments in 2023, as revealed by a report from Omdia


Payment issuers and acquirers are directing their investments towards real-time payments in 2023, as revealed by a report from Omdia.


The study, conducted in preparation for Money 20/20 Europe on 6 June 2023, found that 23% of issuers and acquirers consider real-time payments as their top priority for product development.

The report highlights several key findings. Globally, payment issuers and acquirers are projected to spend USD 3.1 billion on real-time payments in 2023, with IT spending expected to reach USD 4.1 billion in 2027. This represents a compound annual growth rate (CAGR) of 6.8% over the period of 2022 to 2027.

Real-time payments are viewed as the top priority for product development by 23% of issuers and acquirers, surpassing debit and credit cards, as well as digital wallets. Among the various products enabled through real-time payments, bill payments, account-to-account (A2A) transfers, and cross-border SME payments are considered the most significant.

Additionally, the study indicates that nearly 40% of payment issuers and acquirers see open banking payments as one of their top three opportunities. However, the widespread use of cloud technology is necessary to enhance capacity and support the open APIs ecosystem.

Furthermore, the report reveals that a significant majority of merchants, both online and in-store, express interest in accepting real-time payments. Approximately 80% of merchants are keen on adopting real-time payments in physical stores, while over three-quarters are interested in accepting such payments online.

Regulatory initiatives are driving significant transformations in the payment industry, with many markets pushing for the development of real-time payment infrastructure and encouraging banks to invest in new systems. The maturity of Open Banking and partnerships with fintech companies are expected to fuel the growth of alternative payment services, making them more familiar to consumers and businesses in 2023.

Ultimately, real-time payments are poised to evolve into a global system, enabling greater accessibility to payments and remittances. Additionally, various non-bank entities are recognizing payments and financial transactions as vital components of a broader technological ecosystem. Superapps, particularly popular among younger generations in Asia, are becoming increasingly focused on payments and financial transactions.

A Senior Research Analyst in Omdia's Financial Services team emphasises the importance of strategic partnerships between vendors and financial institutions or fintechs to expedite the adoption of alternative payments. Recognising that potential clients now include telecommunications companies, retailers, and other commercial businesses venturing into the payments sector, such partnerships will play a critical role in driving adoption.

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Keywords: report, study, online payments, Open Banking
Categories: Banking & Fintech
Companies: Omdia
Countries: World
This article is part of category

Banking & Fintech


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