Middle East Leads Global Real-Time Payments Growth for Second Year

News Desk - 29/05/2024

For the second consecutive year, the Middle East has emerged as the fastest-growing real-time payments market globally, according to the 2024 Prime Time for Real-Time report by ACI Worldwide (NASDAQ: ACIW) and GlobalData. ACI Worldwide, a global leader in real-time payments software, partnered with GlobalData, a prominent data and analytics company, to deliver this comprehensive report.

Real-time payments are rapidly becoming integral to the modern economies of the Middle East. Government initiatives to implement real-time payment schemes are benefiting businesses and consumers alike, ushering in a new era of financial transformation and opportunities.

Exceptional Growth and Future Projections

In 2023, the Middle East saw a staggering 33.6% year-over-year growth in real-time payment transactions, totaling 855 million transactions. This number is expected to surge to 3 billion by 2028, reflecting a compound annual growth rate (CAGR) of 28.8%. Last year, Oman, Kuwait, and Qatar launched their national real-time payment schemes, joining Saudi Arabia, Bahrain, and the UAE. With all six GCC member states now running real-time payment programs, the transaction value in the Middle East is projected to escalate from USD 230 billion in 2023 to USD 903 billion by 2028.

Bahrain: A Leading Market

Bahrain stands out as one of the most developed payment markets in the Middle East, with real-time payments comprising nearly 50% of its total payment volume and the majority of electronic payments.

Benefits and Future Directions

“Real-time payments eliminate payment friction, enhance liquidity, and promote economic growth and financial inclusion. However, banks must transcend legacy systems to unlock the full potential of real-time payments,” said Santhosh Rao, Senior Vice President of Sales at ACI Worldwide MEASA. With real-time payment schemes now operational in every GCC nation, local banks are at a critical juncture, needing to modernize and future-proof their infrastructure to leverage the full potential of real-time payments.

Shift Towards a Cashless Economy

The surge in real-time and electronic payments signifies the Middle East’s determined shift towards a cashless economy. In 2023, electronic transactions dominated, accounting for over 50% of all transactions and 95% of the transaction value in the region. Real-time payments made up 12% of electronic transactions, a figure set to rise to 22% by 2028, surpassing Europe and North America. By 2028, cash-based transactions are expected to dwindle to just 3% of all transaction value in the region.

Learning from Global Success

Santhosh Rao emphasized the importance of collaboration in building a thriving real-time payment ecosystem. “The world’s most successful real-time payment schemes, like India’s, showcase a variety of methods using QR codes, mobile apps, and online accounts. With the Middle East leading in real-time payments growth, financial institutions should study these successes to inspire their own innovative solutions.”