With 41 million transactions per day, India has become the global leader in real-time financial transactions, says an international report by FIS Global. It stated that India’s growth was 213 per cent. “The country continues to innovate with the launch of extensive business services on the real-time rails including IPO subscriptions, mandate management and invoice-in-the-box,” the report said.
Six other countries also saw their real-time transactions more than double year-on-year, and four had a twofold increase in transaction value. Bahrain tops the list with 657 per cent growth, followed by Ghana at 488 per cent, the Philippines at 308 per cent, Australia with 214 per cent and Poland at 208 per cent. The report highlighted South Korea recording the highest number of real-time transactions per capita, with 75 transactions annually processed. India, China and South Korea were the top three in the Asia Pacific region. Moreover, European payments service providers have joined the pan-European Sepa Credit Transfer Instant Payments Network. It brings cross-border and instant payments to 20 countries. Vietnam and Hungary have also added real-time payments networks, since 2019, bringing the total number of countries with such schemes to 56.
Raja Gopalakrishna, head of Global Realtime Payments at FIS, said the current pandemic has highlighted the critical importance of instantly getting funds in the hands of those who need it – be it individuals or businesses. The request to pay (R2P), cross-border payments, and corporate treasury business-to-business payments are driving adoption of real-time payments networks globally, the report said. R2P systems offer a convenient and flexible way for people, businesses and governments to request a payment from a third-party. Furthermore, the report states that while the National Payments Corporation of India (NPCI) has been successful in democratizing digital payments with steps like the launch of UPI, the Reserve Bank of India has invited private players to form a pan-India new umbrella entity for retail payment systems.
Digital payments have increased throughout the country with the advent of smartphones and accessibility of high speed internet connectivity.