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

The United States real-time payments market is experiencing significant growth, driven by the increasing adoption of e-commerce and online transactions. The market's expansion is supported by the rising penetration of smartphones and heightened customer expectations for flexible payment solutions. The shift away from traditional banking methods, coupled with investments from government and financial institutions, is further accelerating the market's development. Despite challenges such as security concerns and payment frauds, the market continues to thrive, aided by changes in consumer behavior and government initiatives during the COVID-19 pandemic.

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Market Size of United States Real Time Payments Industry

united states real-time payments market size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 10.12 %
Market Concentration Medium

Major Players

united states real-time payments market share

*Disclaimer: Major Players sorted in no particular order

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.

By Type
P2P
P2B
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United States Real Time Payments Market Size Summary

The United States real-time payments market is experiencing significant growth, driven by the increasing adoption of e-commerce and online transactions. The surge in smartphone penetration and rising consumer expectations for convenient payment solutions are key factors supporting this market expansion. As traditional banking systems struggle to meet the demand for frequent and flexible payment options, the emergence of fintech payment providers and secure gateways has enhanced the real-time payments landscape. The market is further bolstered by government and financial institution investments aimed at accelerating the adoption of real-time payment solutions. However, security concerns and payment frauds pose challenges that could potentially hinder market growth.

The shift in consumer behavior towards online and mobile commerce, accelerated by the COVID-19 pandemic, has created new opportunities for real-time payment solutions. The retail sector's growth, driven by digital technologies and personalized services, is expected to boost mobile payment methods. Companies like Google and Apple are making payments more convenient through technologies like NFC and Tap to Pay, respectively. The market is moderately fragmented, with major players such as ACI Worldwide, Worldpay, and emerging startups contributing to its development. Strategic partnerships and new product launches, such as JPMorgan Chase's Request for Pay and FedNow Service, are set to enhance the efficiency and accessibility of real-time payments across the United States.

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United States Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the country

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 1.5 Impact of COVID-19 on the payments market in the country

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 P2P

      2. 2.1.2 P2B

United States Real Time Payments Market Size FAQs

The United States Real Time Payments Market is projected to register a CAGR of 10.12% during the forecast period (2024-2029)

ACI Worldwide, FIS, Fiserv, Mastercard and PayPal are the major companies operating in the United States Real Time Payments Market.

United States Real Time Payments Report Snapshots

United States Real Time Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)