FIS has published its annual report on the evolution of real-time payments throughout the world. A copy of their “Flavors of Fast” report can be found here. The report reviews the existing 57 real-time payment systems and provides some detail around the impact of real-time payments in India, which, in my mind, is fascinating given the impact that real-time payments and overlay services like P2P and mobile payment apps have played.
When the government in India decided in 2016 to rather abruptly discontinue the use of some denominations of its currency, this had the desired reaction of pushing the population towards more forms of electronic payments, including the use of real-time payment applications. The recent pandemic has further instigated its growth. They are experiencing 20 – 30% growth year-over-year, conducting billions of payments each month.
Here’s what an article from CNBC had to say on the topic:
According to the report released on Wednesday, six other countries also saw more than doubling of their real-time payment transactions year-over-year, while four saw at least a twofold increase in transaction value. But in terms of the growth rate, the list is topped by Bahrain with 657 per cent growth, followed by Ghana clipping at 488 per cent, the Philippines growing at 309 per cent, Australia at 214 per cent, and Poland at 208 per cent. India’s growth was 213 per cent, handling 41 million transactions a day, according to the report.
India leads global real-time payments, processing 41 million real-time transactions per day, more than any other country in the world, says the report, adding the country continues to innovate with the launch of extensive business services on the real-time rails including IPO subscriptions, mandate management and invoice-in-the-box. South Korea reported the highest number of real-time transactions per capita, with 75 transactions annually processed. In the US, over 130 financial institutions are currently implementing real-time payments, a five-fold increase since September 2019.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group