“India is the poster child for instant payments; “China has been eclipsed with 18 billion transactions in a row.
“India is the poster child for instant payments; “China has been eclipsed with 18 billion transactions in a row.
Bengaluru
In 2021, India’s real-time transactions grew to a staggering 48.6 billion, almost triple that of its biggest challenger China with 18 billion transactions and nearly seven times the combined real-time payment volume (7.5 billion). world’s leading economies: US, Canada, UK, France and Germany, according to an ACI Worldwide Report released this morning Peppystores.
The widespread adoption of real-time payments led to an estimated $12.6 billion in cost savings for Indian businesses and consumers in 2021, which helped unlock $16.4 billion in economic output, according to research published by ACI 0.56% of the country’s GDP corresponds to Worldwide, a provider of real-time payment software in partnership with GlobalData, a data and analytics company, and the Center for Economics and Business Research (Cebr).
The growing acceptance of UPI-based mobile payment apps and QR code payments by merchants, coupled with the increased use of digital payments during the COVID-19 pandemic, helped real-time payments account for 31.3% of total payment transaction volume in 2021 secured in the country, the study found.
As consumers increasingly shift from cash to real-time mobile payments and skip payment cards, real-time payments as a share of total payment volume would grow to over 70% in 2026, with net savings for businesses and consumers expected to increase to $92.4 billion in 2026 , which will help generate an additional $45.9 billion in economic output, equivalent to 1.12% of the country’s projected GDP, it added.
Ankur Saxena, Head of South Asia, ACI Worldwide, said: “India is the poster child for real-time payments and a shining example of how a coordinated, collective, nationwide effort can unleash tremendous economic and social potential.”
“India’s greed for cash may be waning, but there is still work to be done. It’s time to accelerate our efforts and extend that impact beyond prime metropolitan areas and replicate our success for the benefit of the entire country,” he said.
Globally, real-time payment transactions topped 118.3 billion in 2021, a 64.5% year-over-year growth that is expected to reach 427.7 billion by 2026.
Thailand, Brazil and South Korea trailed behind India and China with real-time transaction volumes of 9.7 billion, 8.7 billion and 7.4 billion, respectively.
The report tracked real-time payment volume in 53 countries and covered all G20 countries except Russia. Interestingly, more than half (52.71%) of consumers worldwide now own and use a mobile wallet, according to the study.
Real-time payments improve liquidity and productivity
The study found that real-time payments improved liquidity in the financial system and therefore acted as a catalyst for economic growth.
“By allowing money to be transferred between parties in seconds instead of days, real-time payments improve overall market efficiency in the economy,” commented Owen Good, Head of Advisory, Center for Economic and Business Research.
Globally, real-time transactions offered aggregate net savings of $46.6 billion for consumers and businesses across 30 countries in 2021, and savings are expected to grow to $184 billion by 2026.
The study also found that 53 countries would have needed to employ 4.9 billion people to manually execute that many transactions with an equivalent output, and by 2026 the job requirement could rise to 10.3 billion, according to the study.
