Instant payments: the future of how we pay? (Image: Fotolia)
Advances in digital technologies and the growing number of internet users worldwide are driving the rapid adoption of instant bank transfer payments, with the instant payments market expected to grow from $18.3 billion today to over $126 billion. pounds sterling by 2032.
Improved living standards and rising levels of consumption in developing economies have also increased the demand for different online payment gateways, further boosting global instant payments markets, according to research by Future Market Insights (IMF). . Users’ use of the Instant Virtual Visa card has also seen significant growth over the past two years.
The report indicates that several companies have adopted instant merchant services to increase sales of their products by providing a better shopping experience for customers. The development of the banking sector to provide online services has also made the integration of instant approval methods for offshore merchant accounts easier than before.
According to the report, “Innovations in cashless transaction solutions by the banking industry in all major economies have created an enabling environment for the rapid adoption of instant payment services in local markets. The growing popularity of online and mobile banking has also strengthened instant payment gateway platforms in the global market.”
The current digital literacy gap, particularly in low-income countries, and the reluctance to provide banking details on online platforms is expected to limit the growth of instant electronic funds transfer services provided by many players in the market.
The report also highlights that the net value of the global instant payments market stands at US$24 billion in 2022. At the current growth rate, it is expected to grow by US$102.3 billion in terms of absolute dollar through the forecast years from 2022 to 2032.
Instant payment systems around the world that charge a certain amount for the services are the most profitable segment for the global instant payment market than the free type. This segment is expected to grow at a rate of 17.9% over the forecast years owing to its quality services.
Over the years, the mode of online funds transfer has been adopted by many money transaction outlets. Person-to-person or P2P money transfers are the most popular segment of the global instant payments market which is expected to experience the highest growth rate than other applications with a CAGR of 17.4% during the period forecast.
North America dominates the global market by providing instant payment services to merchants operating in regional markets. Instant Approval Merchant Account in USA is attributed with capturing nearly 35% of global instant payments market and is projected to be worth nearly US$44.7 billion in 2032 by increasing with highest CAGR by 17.8%.
The Asia-Pacific geographic region follows North America in total market share contribution due to the higher number of PoS instant payment facilities in the regional markets. China, Japan and South Korea are together the top performers, accounting for up to 16% of the global instant payments market.
Major players operating in the global instant payments market are Vocalink, SWIFT, Danske Bank, Paytm, OCBC, Barclays, Apple, Bayer, Ripple, and Paypal.
The major strategy adopted by the major players in the global instant payment market is to collaborate with several regional banks and financial institutions to make their instant payment platforms more trustworthy among users. Many market players have also introduced prepaid cards with instant bank transfers which should give them an edge over their competitors.
Apple Company partnered with Goldman Sachs in 2019 to launch a credit card under its banner. This card facilitates instant online money transfer for its customers and is expected to increase the company’s portfolio in the global market.