The real-time payments market is on the rise, with FinTech Futures projecting a staggering 32% increase to nearly $87 billion by 2028. In the latest episode of Forward Exchanges, Siobhan O’Neill-Schwenk delves into the key trend shaping 2023: “The Revolution in Real-Time Payments.” Joined by industry veterans Robin Gandhi, Nium Chief Product Officer, and Reed Luhtanen, Strategic Advisory Board Member at Identifee and Executive Director at U.S. Faster Payments Council, the conversation explores the demand for instant payments not only in the U.S. but also in markets such as Singapore, Malaysia, and Brazil.
The need for real-time payments is driven by the speed of the digital economy, which is one of the leading factors behind the adoption and demand of fast money movement. In the U.S., there is still a lot of ground to cover to make payments less fragmented, especially due to factors including complex user experiences, risk of fraud, catering to different transaction types, and effectively leveraging various payments networks.
The shift toward real-time payments is further accelerated by business functions such as payroll; the gig economy has developed a global workforce with employees distributed worldwide. This is one of the reasons financial institutions have a huge opportunity to win customers by providing faster payments as their differentiator.
Major global markets have already adopted real-time payments, with high-growth countries such as Brazil, India, and Malaysia leading the way. However, there are risks associated with real-time payments and it is necessary to build risk mitigation strategies into the infrastructure.
Learn more about the growth of the real-time payment market by listening to the Nium podcast and subscribe for future podcast episodes.