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Real-Time Payments Market


Information & Communications Technology
Analytics

The services segment is expected to grow at a higher CAGR during forecast period

On the basis of components, the real time payments market has been classified into solutions and services, out of which the services segment is expected to grow at a higher CAGR during the forecast period. The utilization of real time payments solutions is growing; this has resulted in the increasing demand for payments services. The services segment has further been broken down into professional services and managed services. Among these segments, the managed services segment is expected to grow at a higher CAGR, whereas the professional services segment is expected to be a larger contributor to the market size. The increasing demand for real time payments solutions has resulted in the growing demand for professional and managed services.

The retail and e-commerce vertical is expected to have the largest market size and grow at the highest CAGR during the forecast period

The retail and e-commerce vertical is expected to have the largest real time payments market size and grow at the highest CAGR during the forecast period. The huge demand for instant payment settlements from retailers and merchants has led to the maximum adoption real time payments solutions and the associated services. Real time payments solutions provide a competitive edge to retail and e-commerce businesses by offering them a cheaper and faster mode of payment. Moreover, customers prefer online shopping due to the increasing integration of mobile devices in their shopping habits.

Asia Pacific (APAC) is expected to hold the largest market size and grow at the highest CAGR during the forecast period

On the basis of regions, the global real time payments market has been segmented into North America, Europe, APAC, Middle East and Africa (MEA), and Latin America. APAC is expected to hold the largest market size and grow at the highest CAGR during the forecast period. In the APAC region, the growth rate can be attributed to various factors, including the adoption of advanced technologies, economic developments, increasing rate of digitalization, and high investments by real time payments solution and service providers. The driving forces for the growth of the market in this region include the huge population in this region that contributes to the volume of transactions, and the domestic and international enterprises that are investing in this region.

Real-Time Payments Market

Major vendors in the global real time payments market include ACI Worldwide (US), FIS (US), Fiserv (US), Mastercard (US), Worldline (France), PayPal (US), Visa (US), Apple (US), Ant Financial (China), INTELLIGENT PAYMENTS (Gibraltar), Temenos (Swtizerland), Wirecard (Germany), Global Payments (US), Capgemini (France), IntegraPay (Australia), SIA (Italy), Obopay (India), Ripple (US), Pelican (UK), Finastra (UK), Nets (Denmark), FSS (India), Montran (US), REPAY (US) and Icon Solutions (UK).

MnM view of Wirecard:

Wirecard is a leading supplier of online banking payment services. It focuses on expanding its services and solutions portfolio in the emerging markets by introducing various strategies and developments in eCommerce. It combines the latest technologies with banking services and products to innovate new solutions that can improve the customer experience and reduce the security risks related to payment transactions. Wirecard provides a wide range of software-enabled payment solutions and helps companies implement real time payments strategies across all their sales channels.

Wirecard aims to offer a comprehensive portfolio of digital financial services from a single source on a digital platform. The company follows a mix of organic and inorganic strategies and is focused on new product launches, partnerships, business expansions, and acquisitions for its stable growth in the digital payment industry. For instance, in July 2018, Wirecard extended its partnership with SAP to launch the Wirecard Extension for SAP Commerce. The company also launched a new Payment Page Designer for online retailers and expanded its value-added services for the eCommerce vendors.

MnM view of Mastercard:

Mastercard is a leading financial technology company. The company is significantly investing in the areas of real-time account payments, digital services, data analytics, and geographic expansion. The company plans to diversify its business through organic and inorganic growth strategies. For instance, in July 2016, Mastercard acquired VocaLink Holdings Limited for approximately USD 920 million. The acquisition helped Mastercard in becoming an active participant in all types of electronic payments and payment flows and enhance its services for the benefit of customers and partners. The company is also focusing on strengthening its product portfolio by introducing new products. For instance, in September 2018, Mastercard, along with Microsoft, introduced Mastercard Track, a B2B platform powered by Microsoft Azure, to connect buyers and suppliers with networks, banks, and solution providers. The solution would help in streamlining and automating the procure-to-pay process that enables businesses to manage their business identity, compliances, and payments in a more efficient way.

Recent developments

  • In August 2018, ACI Worldwide partnered with SPAN Enterprises, a cloud-based software company, to boost payments and enhance the customer experience in the transportation industry by deploying ACI’s Official Payments, an IRS tax payment system.
  • In September, Fiserv agreed to acquire Elan Financial Services, a unit of U.S. Bancorp. Elan Financial Services is a provider of debit card processing, ATM managed services, and MoneyPass surcharge-free ATM network. The acquisition would enable Fiserv to strengthen its presence in the arena of debit card processing and expand its mobile and digital payments offering for consumers and businesses.
  • In June 2018, PayPal acquired Simility, a leading fraud prevention and risk management platform, for USD 120 million. Paypal aims at expanding its fraud prevention and risk management portfolio for merchants, following this acquisition.

Critical questions the report answers

  • Where will all these developments take the industry in the mid to long-term?
  • What are the upcoming industry trends in the real time payments market?
  • Which are the vendors operating in the market?
  • What are the drivers and challenges of the market?

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