Financial Sector's Crucial Modernization: The Imperative Infrastructure Improvement Institutions Can't Afford to Overlook
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As we move towards the future, the landscape of global banking is undergoing a significant transformation, with real-time payments (RTPs) emerging as a crucial component of the financial ecosystem. By 2028, RTP transaction volumes are expected to exceed 575 billion annually, representing 27.1% of all electronic payments worldwide.
This growth is driven by a rapid global adoption of instant payment systems, a result of technological advances, regulatory mandates, and the increasing demand for faster, more efficient, and transparent payment methods.
Key trends and predictions include a strong Compound Annual Growth Rate (CAGR) for the U.S. RTP market, which is forecasted to grow at 31.7% CAGR from 2023 to 2028. Asia leads in RTP volumes, with India’s UPI alone processing billions of transactions monthly, making it the largest RTP system globally. Europe also shows significant growth, with the European instant payments projected to grow tenfold by 2028.
Cross-border RTP expansion is another significant trend, transforming cross-border finance with increased efficiency, transparency, and reduced costs. Examples include integrations like the India-UAE UPI linkage and regional corridors in Southeast Asia, such as the integration between Singapore's PayNow and Thailand's PromptPay, and India's UPI connection with the UAE.
Instant payments accounted for 13% of global non-cash transactions in 2022, expected to surpass 22% by 2028. Many institutions are adopting hybrid models, using RTPs and stablecoins based on operational need, currency pair, or jurisdiction.
RTPs are not only reshaping the way payments are made but also compliance and fraud prevention. They require advanced transaction screening and monitoring capabilities to ensure secure and efficient transactions.
The RTP era is defining the future of financial services, presenting a strategic opportunity for financial services leaders to modernize architecture and prepare for the next wave of innovation. Financial institutions investing in AI-powered tools, behavioural analytics, and real-time anomaly detection are better positioned to spot suspicious activity without introducing friction into the payment process.
One such institution is Clear Junction, whose platform gives financial institutions access to regulated real-time schemes and secure stablecoin rails, focusing on building infrastructure for the hybrid future.
The impact of RTPs extends beyond just payments, enhancing liquidity management, operational cost reduction, financial inclusion, SME support, and real-time cash optimization for banks and financial institutions, driving a shift from batch to instant settlement processes.
In countries like Brazil, the Pix system processes more than 150 million transactions daily and has boosted financial inclusion, reduced cash dependency, and supported the digitalization of the economy.
As demand grows for instant, transparent, and programmable payment solutions, institutions that move early will be well-positioned to lead. The RTP revolution is here, and it's shaping the future of global banking infrastructure, emphasizing speed, transparency, and efficiency.
[1] The Future of Real-Time Payments: Global Trends and Predictions
[2] The Rise of Real-Time Payments: A Global Perspective
[3] The State of Real-Time Payments in Europe
[4] The Impact of Real-Time Payments on the Global Financial Ecosystem
This article is dated 23.07.2025 02:00 pm and written by the Director of Product and Banking Relationships at Clear Junction, Nina Papazyan, on the topic of Real-Time Payments and Banking Infrastructure.
[1] The article, written by Nina Papazyan in 2025, discusses the future of real-time payments (RTPs) and their impact on the global financial ecosystem.
[2] The rise of RTPs is transforming the global banking industry, with many institutions adopting a hybrid model that includes RTPs and stablecoins.
[3] The state of RTPs in Europe shows significant growth, with European instant payments projected to grow tenfold by 2028.
[4] RTPs are not only revolutionizing payment methods but also enhancing other facets of the business, such as compliance, fraud prevention, liquidity management, and financial inclusion.
