Business Wire

Europe Lags Behind Emerging Nations in Real-Time Payments Modernization - Missing Out on Economic Growth - ACI Worldwide Report

Share

Leading European economies, including the UK and France, lag behind emerging economies, such as India and Brazil, when it comes to real-time payments modernization and are losing out on economic growth, according to the 3rd edition of Prime Time for Real Time 2022, published by ACI Worldwide, (NASDAQ: ACIW), in partnership with GlobalData , a leading data and analytics company, and the Centre for Economics and Business Research (Cebr).

The report – tracking real-time payments volumes and growth across 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses and the broader economy across 30 countries. The report covers all G20 nations, excluding Russia. *

The research reveals that the combined real-time payments volume across the top 5 global markets – India, China, Thailand, Brazil and South Korea – helped to facilitate US$54.5 billion of additional economic output in 2021 – forecast to grow to US$131.1 billion in 2026.

In contrast – across the leading developed markets US, Canada, UK, France and Germany – the additional economic output supported by real-time stood at US$7.3 billion in 2021 – expected to rise to US$14 billion in 2026.

The research shows that governments that advance the real-time modernization of their national payments infrastructure create a win-win situation for all stakeholders in the payments ecosystem: consumers and businesses benefit from fast, frictionless and hyper-connected payments services, financial institutions future-proof their business in a highly competitive environment by speeding up cloud-first and data-centric modernization, and national governments boost economic growth, reduce the size of their shadow economy and create a fairer financial system for all.

Real-time payments have been possible in the UK since 2008 under the Faster Payments scheme. France, Germany, and the Netherlands all adopted the pan-European real-time payments scheme, SCT Inst – in 2018, 2017 and 2019, respectively. However, the markets' development has been markedly slower than those in the developing world. Payments in many European countries are still tied to traditional tools — especially cards — despite it being easy and cheap for consumers to access real-time payments. The potential economic benefits of real-time payments remain untapped across all four countries.

European Regional Highlights

United Kingdom

  • The UK recorded 3.4 billion real-time transactions in 2021, which resulted in estimated cost savings of $US950 million for businesses and consumers. This helped to unlock $US3.2 billion of additional economic output, representing 0.10% of the country's GDP.
  • With real-time transactions set to rise to 5.8 billion in 2026 – net savings for consumers and businesses are forecast to climb to $US1.8 billion in 2026, helping to generate an additional $US3.8 billion of economic output, equivalent to 0.11% of the country's forecasted GDP.
  • That means the potential economic benefits of real-time payments remain still untapped. According to the Cebr, the theoretical impact of all payments being real-time could add 2.7% to formal GDP by 2026. However, these are theoretically modelled benefits, this does not suggest that there is no longer place for non-instant electronic payments or paper-based payments in the future.

Germany

  • Real-time payments have failed to gain significant traction despite being available for 5 years and accounted for only 2.7% of the country's total payments in 2021.
  • In 2021 real-time transaction volumes were 1.2 billion, predicted to rise to 3.4 billion by 2026 – a CAGR of 24.1%. Estimated cost savings for businesses and consumers in 2021 reached $US296 million which helped to unlock $US1.4 billion of additional economic output, representing 0.3% of formal GDP.
  • In 2026, net savings for consumers and businesses are forecast to climb to $US1.1 billion, helping to generate an additional $US3.3 billion of economic output, equivalent to 0.7% of the country's forecasted GDP.

France

  • Real-time payments remain a small payments tool in France, accounting for 0.3% of total payments transaction volume in 2021.
  • Like Germany, real-time payments have had minimal effect on total payment volumes accounting for only 0.3% in 2021, far behind electronic payments at 67.8% and paper-based transactions at 31.9%.
  • Real-time payments transaction volumes in 2021 were 108 million, predicted to rise to 1.2 billion by 2026 – a CAGR of 61.3%.
  • In 2021 real-time payments stimulated $US27 million in net savings for consumers and businesses, and helped facilitate $US105 million of economic output, equivalent to 0.01 % of formal GDP. In 2026, net savings stimulated are projected to rise to $US315 million, facilitating additional economic output of $US872 million or 0.03 % of forecasted GDP.

Netherlands

  • Real-time payments had a rapid adoption in the Netherlands. By 2021, the real-time payments market share of total payments volume reached 10%, rapidly gaining
    on paper-based transactions, at a 13.9% share of total payments volume.
  • In 2021, the country recorded 1.2 billion real-time transactions, which resulted in estimated cost savings of $US338 million for businesses and consumers – which helped facilitate $US1.1 billion of additional economic output, or 0.12% of formal GDP
  • With real-time transactions forecast to rise to 4.4 billion in 2026 – net savings for consumers and businesses are predicted to climb to $US1.6 billion, helping to unlock an additional $US2.4 billion of economic output, equivalent to 0.23% of the country's forecasted GDP.

"Europe has a world-leading Open Banking framework, but the current thinking lacks the speed and ambition shown by many other countries regions worldwide," said Nick Craig, Head of Europe, ACI Worldwide. "Europe has a great opportunity to build a thriving real-time ecosystem that rivals the integrated, real-time-based, mobile-first ecosystems of Asia but payments leaders and politicians must act now or risk falling further behind."

"Real-time transactions and growth forecasts continue to rise globally, with emerging countries like India leading the way and outpacing developed nations. As governments around the globe, especially step up their interventions in real-time payments, they are viewed as the primary enabler of economic growth and prosperity, providing consumers and businesses with cheaper, faster, and more efficient payment methods." Jeremy Wilmot, Chief Product Officer, ACI Worldwide. "In India, payments are increasingly becoming embedded into non-financial digital apps and services, with customers looking for a hyper-connected, frictionless user experience," continued Jeremy Wilmot.

By allowing for the transfer of money between parties within seconds rather than days, real-time payments improve overall market efficiencies in the economy," commented Owen Good, Head of Advisory, Centre for Economic and Business Research. "Real-time payments improve liquidity in the financial system and therefore function as a catalyst for economic growth. This is especially important for our fast-paced and digital-led gig economies. Workers are paid quickly, allowing them to better plan their finances. Businesses have more flexible and reduce the need for burdensome cashflow management."

"Developing nations continue to drive the majority of real-time volume gains, confirming the industry trend of the strongest growth coming from economies with minimal existing electronic payments infrastructure, and therefore heavier reliance on cash," said Sam Murrant, Lead Analyst, GlobalData. "Amid all this activity, mobile in its multiple forms will shape the trajectory of real-time payments for developing markets. India provides the template for mobile wallet integration with underlying real-time payment systems. Mobile will still be the leading form factor in developed markets. However, we may see banks' involvement sitting more behind wallets."

Prime Time Real Time Report 2022 - All Global Figures-at-a-Glance

GlobalData - Real-Time Payments Growth:

2021

2026

Real-time transactions made globally

118.3 billion

427.7 billion

YoY growth
64.5%

2021

Five countries with the highest volume of real-time payment transactions

India
48.6 billion

China
18.5 billion

Thailand
9.7 billion

Brazil
8.7 billion

South Korea
7.4 billion

CAGR 2021 – 2026

Top 5 fastest growing real-time markets (where instant payments share of all electronic payments was 10% in 2021)

Brazil
56.8%

Oman
41.0%

India
33.5%

Philippines
31.7%

Malaysia
26.9%

Top fastest growth of real-time transactions by regions

South & Central America
51.3%

Middle East, Africa & South Asia
32.6%

North America
30.2%

Europe
23.0%

Asia-Pacific
15.0%

Cebr Real-Time Economic Impact:

2021

2026

Aggregated net savings for consumers and businesses facilitated by real-time payments across the 30 countries observed

US$46.6 billion

US$184.0 billion

Formal GDP facilitated by real-time payments

US$78.4 billion
(equivalent to 0.10% of the combined GDP of the 30 countries)

US$173.0 billion
(equivalent to 0.19% of the combined forecasted GDP of the 30 countries)

Global number of jobs required to produce an equivalent level of output

4.9 million jobs

10.3 million jobs

India, Brazil, China, Thailand, South Korea – business and consumer level benefits

US$37.0 billion combined

US$164.6 billion combined

India, Brazil, China, Thailand, South Korea – formal GDP supported by real-time:

US$54.6 billion

(Equivalent to 0.23% of the combined GDP of the five countries, or the equivalent output of 4.2 million workers)

US$131.7 billion
(Equivalent to 0.43% of the combined forecasted GDP of the five countries, or the equivalent output of 9.0 million workers)

U.S., Canada, U.K., France, Germany – business and consumer level benefits

US$2.1 billion combined

US$5.5 billion combined

U.S., Canada, U.K., France, Germany – formal GDP supported by real-time:

7.3 billion
(Equivalent to 0.02% of the combined GDP of the five countries, or the equivalent output of 70.4 million workers)

13.9 billion
(Equivalent to 0.04% of the combined forecasted GDP of the five countries, or the equivalent output of 118.9 million workers)

GlobalData - Consumer Payments Modernization:

2021

Over half of consumers worldwide now own and use a mobile wallet:

52.7 1%

up 12.1% in the two years since 2019 (Covid-19 impact), and up 33.8% since 2018

GlobalData - Fraud Trends

2020

2021

Cases of card details being stolen online are falling – 2021 saw a slight decrease in cases

17.5%

16.9%

Cases of card details being stolen or skimmed in person are also falling – 2021 saw a decrease in cases

15.5%

0.5%

Digital wallet account hacks, identity theft and social engineering cases are rising. Percentage of total fraud cases:

2020

2021

Digital wallet account hacks

6.2%

7.3%

Identity theft

11.6%

12.0%

Social engineering

13.7%

14.4%

*Note to editors: Russia is not included in the Cebr Economic Impact Study in the absence of a robust data set.

About ACI Worldwide

ACI Worldwide is a global leader in mission-critical, real-time payments software. Our proven, secure, and scalable software solutions enable leading corporations, fintechs, financial disruptors and merchants to process and manage digital payments, power omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.

© Copyright ACI Worldwide, Inc. 2022

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media
Katrin Boettger
katrin.boettger@aciworldwide.com
Europe, Middle East, Africa

Nidhi Alberti
nidhi.alberti@aciworldwide.com
North America, Latin America

Gary Hamilton-Walker
gary.hamilton-walker@aciworldwide.com
Asia Pacific, South Asia

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Align Technology Introduces Invisalign Outcome Simulator Pro, Next Generation Patient Communication Tool Featuring In-Face Visualization of a Patient’s Potential Future Smile in Minutes19.5.2022 22:41:00 CEST | Press release

Align Technology, Inc. (“Align”) (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign system of clear aligners, iTero intraoral scanners, and exocad CAD/CAM software for digital orthodontics and restorative dentistry, today introduced Invisalign Outcome Simulator Pro, the next generation of its advanced patient communication tool. This enables doctors to show patients their potential new smile after Invisalign treatment, using in-face visualization and/or 3D dentition view, all done chairside in minutes. Invisalign Outcome Simulator Pro is available on iTero Element Plus Series scanners and imaging systems. Invisalign Outcome Simulator Pro expands Align’s existing Invisalign Outcome Simulator technology and adds the benefits of the Company’s ClinCheck “In-Face” Visualization tool that combines a photo of a patient’s face with their 3D treatment simulation, creating a truly personalized view of how their new smile could look. This

New Conviva Data Shows Double Digit Streaming Growth Worldwide; Smart TVs Growing Rapidly as Streaming Moves to Overtake Linear on the Big Screen19.5.2022 21:01:00 CEST | Press release

Global streaming grew 10% globally, including continued growth in mature markets like North America (5%) and Europe (9%), during the first quarter of 2022 as compared to Q1 2021, according to the latest State of Streaming report from Conviva, the continuous measurement analytics platform for streaming media. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005871/en/ Conviva's Q1 2022 State of Streaming Report Available Now! (Photo: Business Wire) “Despite recent news of Netflix’s subscriber contraction, streaming continues to grow worldwide, encompassing an ever-growing stable of platforms offering unique and original content,” said Keith Zubchevich, President and CEO, Conviva. “In mature markets like the US and Europe, viewers are upscreening from small devices to Smart TVs, setting the foundation for streaming to overtake linear TV on the big screen.” Conviva’s Q1 2022 report found big screens (which includes connecte

xFusion Held the European Partner Summit Under the Theme of "Together for a Better Future"19.5.2022 19:00:00 CEST | Press release

On May 19, xFusion held its first 2022 European Partner Summit in Paris, under the theme of "Together for a Better Future." xFusion Digital Technologies Co., Ltd. invited dozens of core partners from more than 10 countries, including France, Germany, Switzerland, Sweden, Poland, Hungary, and countries in the Nordic region to discuss the future and new value exploitation of the industry. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005813/en/ (Photo: Business Wire) Terry Fang, President of xFusion Global Marketing and Sales Department, gave a welcome speech on behalf of xFusion. Intel and other partners then shared the latest concepts and practices within the European digital economy, focusing on topics such as industrial digitization and intelligentization, while offering suggestions for the development of industrial digital intelligence. Cooperation with Partners for a New European Digital Ecosystem Europe is transi

RMS Expands Global Risk Views Coverage19.5.2022 16:30:00 CEST | Press release

RMS®, a Moody’s Analytics company and world-leading risk modeling and solutions company, announces it will be launching new global views for acute and chronic perils and their climate change impact. RMS already offers a range of regional peril and climate change models, which support detailed acute physical loss modeling products, as well as data products covering hazard and risk scores, and loss costs for individual locations, across multiple time horizons. RMS climate change models and data products have been welcomed by the market, and allow users to stress test portfolio management, risk mitigation, and adaption strategies. The newly announced global views significantly extend RMS’s peril and climate change impact coverage to provide fully correlated global views of risk, and include event frequency and severity, and analysis for current baseline and future climate views. With these new global views, RMS not only delivers a view of risk for acute peril-specific risks, but also chro

Envision the Future and Take on the Power of Computing with GIGABYTE at COMPUTEX 202219.5.2022 16:29:00 CEST | Press release

GIGABYTE, a world leader in computer technology, will be presenting “Power of Computing” as its theme of the year, and exhibiting its leading products and solutions designed for various industries and fields in the upcoming COMPUTEX Taipei. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005640/en/ Envision the Future and Take on the Power of Computing with GIGABYTE at COMPUTEX 2022 GIGABYTE has curated its presentation around the theme “Power of Computing” to demonstrate that, everything from the cloud to the edge, from team collaboration to individual creation, from business applications to personal use, computing done by servers in data centers to process massive data and embedded systems in IoT and personal computers to render real-time information is the key behind groundbreaking innovations that appear in the fields of AI, cloud deployment, smart technologies, and digital content creation, etc. Data Center is an i

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom