Growth persists in Q1 2024, according to payment processor reports
In the realm of cross-border payments, Q1 2024 has marked a significant turning point, with faster electronic payment methods taking centre stage. The market-leading provider of cross-border payments data and intelligence has published a comprehensive report detailing the key trends for payment processors in this quarter.
Key Trends in Q1 2024
The report highlights the substantial growth of Automated Clearing House (ACH) and real-time payment systems. Same Day ACH payments experienced a surge of over 45%, totalling more than 1.2 billion payments valued at $3.2 trillion. This growth significantly outpaced previous years, reflecting the priority businesses place on faster payment settlements to streamline cash application and account reconciliation processes within the same business day.
Sustained ACH growth was also evident in Q1 2025, with 1.9 billion business-to-business (B2B) ACH payments processed, representing a 9% year-over-year increase. Person-to-person (P2P) ACH transactions also grew by 20%, signalling a broader generational shift towards fully digital payments across sectors.
Another notable trend is the surge in real-time payments. The Federal Reserve's FedNow instant payment system experienced a 63% volume increase from Q1 to Q2 2025, processing 2.1 million payments in Q2. Meanwhile, The Clearing House’s RTP (Real-Time Payments) network, used by major banks and over 280 financial institutions, grew transaction volume by 8-10% quarterly, processing over 107 million payments in Q2 2025 worth $481 billion.
The major players dominating the U.S. payment processing space are The Clearing House with its RTP network and the Federal Reserve’s FedNow service. The Clearing House currently captures about 98% of U.S. real-time payment transactions. Both systems are increasingly integrated by banks and fintechs to offer faster, secured payment options.
Industry Insights
The report provides insights into various aspects of the sector, including AI, seasonality, and macroeconomic conditions. PayPal, a publicly traded company, leads the industry in terms of revenue, exceeding the combined total of Fiserv and Global Payments. However, the sector as a whole continued to grow in Q1 2024, though revenue growth wasn't as strong as in previous years.
Interestingly, the term 'macroeconomic conditions' was discussed fewer times by Global Payments, Block, and PayPal in Q1 2024 compared to Q1 2023. On the other hand, dLocal and Worldline discussed 'macroeconomic conditions' more times in Q1 2024 compared to the previous year.
Lucy Ingham, Editor-in-Chief and Head of Content at the platform, stated that the sector showed consistent year-over-year growth for the fourth consecutive quarter. She also noted that topics such as AI and wider industry approaches to macroeconomic conditions continue to be a focus for the sector.
Emerging Trends
The fintech sector's payment segment is projected to grow to $1.5 trillion by 2030. Real-time digital payment adoption is expanding beyond online commerce to in-store retail, gig economy remuneration, online gaming, and governmental aid disbursements. Consumer acceptance is high, with around 90% reporting digital payments usage in recent years, reflecting the solid demand foundation underpinning this growth.
The report also emphasises the ongoing impact of partnerships in the industry, with 'partnerships' or 'partner' being consistently mentioned by the tracked companies.
Emerging markets player dLocal reported the strongest quarterly revenue growth at 34%, but this was the lowest year-over-year revenue growth for the company since it went public. This could be indicative of a slowdown in the growth rate for the company, but it remains a significant player in the sector.
Conclusion
In summary, Q1 2024 marked a critical phase in accelerating payment processing transformation, emphasising same-day ACH and real-time payments as key growth areas. These trends highlight an ongoing shift among businesses and consumers towards instant, secure, and cost-efficient transaction methods, with leading networks like RTP and FedNow playing pivotal roles and fintech innovations expanding market boundaries rapidly.
[1] Source: The Clearing House. [2] Source: NACHA. [3] Source: The Clearing House and Federal Reserve. [4] Source: The Clearing House and Federal Reserve. [5] Source: McKinsey & Company.
You can read the full report by clicking here.
- The growth of Automated Clearing House (ACH) and real-time payment systems is a significant trend in the business sector, particularly in the realm of cross-border payments, facilitated by technology.
- The fintech sector's payment segment is projected to grow to $1.5 trillion by 2030, underpinned by a solid demand foundation and driven by partnerships and technology innovations.
