Real-Time Payments: The Future of Global Transactions

As the financial world evolves, one innovation stands out for its potential to transform the way we transact: real-time payments (RTP). This method, which transfers money directly from one account to another almost instantaneously, is already simplifying global commerce for both businesses and consumers. dLocal's Emerging Markets Payments Handbook highlights the significance of RTP, and it's clear that businesses and consumers worldwide should pay attention.

The surge of real-time payments

Real-time payments are not just a fleeting trend; they represent a shift in the financial landscape. The global transaction value of RTP in 2023 stands at USD $97 billion, and it's projected to soar to USD $376 billion by 2030. This exponential growth underscores the increasing reliance on RTP systems to facilitate fast, secure, and cost-effective transactions.

Government-driven innovation

Many of the most successful RTP systems are spearheaded by government initiatives. Brazil’s Pix and India’s Unified Payments Interface (UPI) are prime examples. These platforms have evolved the payment ecosystems in their respective countries by making instant payments accessible to a vast population. There are also private ventures like South Africa’s Payshap - demonstrating innovation in RTP isn't limited to the public sector. Whether government-led or privately owned, these systems share a common goal: to make financial transactions as seamless and immediate as possible.

How real-time payments work

The checkout experience for RTP varies depending on the system but typically involves a straightforward process. Users might initiate a payment by scanning a QR code, using a tap-to-pay technology at the point of sale, or through their banking app. Alternatively, they might be redirected to the RTP provider’s app or website, where they complete the transaction with a simple verification step, such as a biometric scan or one-time password (OTP). This ease of use is a significant factor driving the adoption of RTP.

Benefits of real-time payments

The advantages of RTP are manifold. Firstly, the immediacy of fund transfers — 24/7, 365 days a year—is a game-changer. Traditional payment methods often involve delays, work days and office hours, but RTP ensures that transactions are completed instantly. This speed is particularly beneficial for businesses, as it enhances liquidity management by reducing the amount of money tied up in processing.

Moreover, RTP is affordable. Unlike some other payment methods, there is no surcharge for making an instant payment. This cost-effectiveness, combined with the ability to handle varied transactions (peer-to-peer, customer-to-business, and business-to-business), makes RTP a versatile solution.

For consumers, RTP consolidates all accounts under one profile, simplifying financial management. It also enhances security by eliminating the risk of card fraud and chargebacks, a crucial consideration in an era where cyber threats are ever-present.

A boom for businesses

For businesses, especially those operating in regions with low financial inclusion, RTP offers a significant opportunity. By integrating RTP into their checkout flows, global businesses can make international eCommerce transactions more accessible and convenient.

The benefits extend beyond consumer transactions. Businesses can pay partners and suppliers more reliably and in real-time, improving overall operational efficiency. The widespread adoption of RTP in regions where governments promote these systems also means businesses can expect broad coverage and acceptance, further enhancing the method's appeal.

Global adoption and future potential

Countries like India, Brazil, Thailand, and Malaysia are leading RTP adoption. Systems like WeChat, Pix, UPI, PromptPay, and DuitNow have become integral to their respective economies. The success of these systems serves as a blueprint for other regions looking to modernize their payment infrastructures.

The integration of real-time payments is not just a smart move; it’s an inevitable one. As the world moves towards faster, more secure, and more efficient financial transactions, RTP stands at the forefront of this revolution. For businesses looking to expand into emerging markets, adopting real-time payments is a strategic move that promises to enhance growth, improve liquidity, and ensure seamless transactions. The future of payments is here, and it’s happening in real-time.

Background on dLocal's Emerging Markets Payments Handbook

dLocal recently launched the first edition of its Emerging Markets Payments Handbook, a comprehensive guide designed to help businesses navigate the complexities of transacting with local and alternative payment methods in Africa, Asia, and Latin America.

This handbook offers in-depth insights and practical strategies for integrating diverse and local payment solutions, including real-time payments, into global business operations. By leveraging dLocal's expertise, companies with expansion goals can effectively boost their reach and optimize payment processes across these high-growth regions.

About dLocal

dLocal powers local payments in high-growth markets, connecting global enterprise merchants with billions of high-growth market consumers across Africa, Asia, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage separate pay-in and payout processors, set up numerous local entities, integrate multiple acquirers and payment methods in each market.

For more information, visit dLocal.