Real-time payments are now an important driver of global economic growth. According to the latest research, these instant transactions could increase global GDP by $285.8 billion by 2028 and create over 167 million new bank account holders worldwide.
Economic Impact
According to ACI Worldwide, real-time payments are improving economies by
allowing money to flow between consumers and businesses in seconds instead of
days. This efficiency cuts transaction costs and helps bring segments of the
informal economy into the formal financial system.
In 2023 alone, these transactions reportedly contributed $164
billion to global GDP, equivalent to the labor of 12 million workers. By 2028,
this contribution is projected to jump to $285.8 billion, a 74.2% increase over
five years.
The growth is driven by the fact that real-time
payments save money. Consumers and businesses globally saved $116.9 billion in
transaction costs in 2023, a figure expected to reach $245.8 billion by 2028. As the adoption of real-time payments grows, these
savings will continue to fuel economic productivity, creating a ripple effect
throughout the global economy.
Real-time payments boost GDP and promote financial inclusion, bringing millions into the formal financial
system. The report highlights a significant empirical link between instant
payments and access to banking.
By 2028, over 167 million people who were previously
unbanked are expected to have opened accounts in the 28 countries studied for
financial inclusion.
Emerging markets stand to gain the most. In countries
like Pakistan, India, and the Philippines, the expansion of real-time payments
is projected to create millions of new bank account holders. Pakistan leads the
pack with 63.5 million new accounts expected, followed by India with 25.5
million and the Philippines with 20.9 million. These newly banked citizens
represent vast new opportunities for financial institutions.
Profitable Opportunities for Banks
Financial institutions stand to benefit enormously
from the rise of real-time payments. The expansion of real-time payments,
especially in emerging markets, creates a significant revenue opportunity for
banks.
The profit potential from this transformation is estimated at $173 billion in Pakistan alone by 2028. Other countries such as
Nigeria ($40.4 billion), the Philippines ($28.7 billion), and India ($24.6
billion) also present massive opportunities.
Banks are also benefiting from regulatory frameworks
that promote real-time payments. Brazil’s central bank, for example, mandates
real-time payment services for all banks through its PIX system, driving
massive adoption across the country.
In India, real-time payments added $50 million to GDP
in 2023, with forecasts predicting $3.6 billion in additional GDP by 2028 in
Indonesia, one of the fastest-growing markets.
Nigeria, Africa’s largest real-time payments market,
saw $7 billion in GDP growth from these transactions in 2023. The country
remains a leader in profit potential for banks, projected to generate $40.4
billion in profit opportunities by 2028.
This article was written by Jared Kirui at www.financemagnates.com.
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