We live in a real-time world. From ordering food to ride-hailing and how we work and socialize, we are increasingly expecting instant service.
This Citi GPS report focuses on the shift toward real-time payments, driven by technological changes and enabled by regulation and policy shifts. With over 80 jurisdictions representing 95% of global GDP now offering instant payment schemes, the world is set to experience explosive growth in global real-time payments adoption. The transition to a 24x7 real-time economy presents both challenges and opportunities, and it will be crucial to balance speed of transactions with robust security.
Corporates will benefit from the efficient use of liquidity and capital but will have to invest in infrastructure for always-on operations, including outside traditional business hours. However, these challenges also create opportunities for innovation and new business models. By embracing innovation, prioritizing cybersecurity, and fostering collaboration across the financial ecosystem, businesses and financial institutions can start to unlock the full potential of real-time payments and build a more inclusive, efficient, and dynamic financial future.
Key Takeaways
| 1 | Shifting consumer behavior, new business models, and technological advancements are collectively driving the need for finance to be 24x7. |
| 2 | Regulation and policy changes are pushing real-time payments into the mainstream. Asia and emerging markets have historically led the way. The mandatory adoption of SEPA Instant across Europe and the rapid expansion of the FedNow Service in the U.S. mark a fundamental shift. Real-time finance is no longer emerging, it is the default. |
| 3 | Strategic advantage increasingly depends on how effectively institutions incorporate real-time capabilities. Banks and corporates need to fundamentally rethink business models and infrastructure. A new wave of finance firms will emerge – new entrants, upgraded existing banks, fintechs and hybrids/partnerships. |
| 4 | Real-time systems like Pix (Brazil), UPI (India), and M-Pesa (Kenya) have demonstrated their ability to drive financial inclusion and support economic development. In some emerging markets, broader adoption could add 1-2ppts to GDP growth. |
| 5 | Speed brings risk. The finality of real-time payments, combined with increasingly sophisticated AI-driven fraud, presents a rapidly evolving threat. Without robust real-time fraud detection, liquidity controls, and AI-based safeguards, institutions risk falling behind in the fight against this trillion-dollar threat. |
| 6 | Real-time cross-border payments are unlocking new opportunities for businesses operating globally, enabling faster settlements, improved working capital management, and enhanced customer experiences. However, the complexities of cross-border interoperability and regulation remain a key challenge. |