Real-Time Payments to Boost India’s GDP by $76.5B

December 21, 2024

Real-time payments are revolutionizing India’s financial landscape with a recent study predicting that this technology will contribute $76.5 billion to India’s economy by 2028. This figure represents 1.5% of the nation’s GDP, equivalent to the output of approximately 8 million workers.

Current Economic Impact

In 2023, real-time payments already added $50 billion to India’s GDP. This growth rate positions India as the leading country globally in GDP growth attributed to real-time payment technologies. The adoption of these systems has enhanced the efficiency of financial transactions.

By 2028, it is estimated that real-time payments will create 25.5 million new bank accounts in India. This influx of new accounts could generate around $24.6 billion in revenue for financial institutions. The average lifetime value of a customer is projected to be approximately $963.

Global Context

On a global scale, real-time payments are expected to contribute $285.8 billion to GDP by 2028. This represents a remarkable 74.2% increase over five years. Furthermore, it is anticipated that more than 167 million people worldwide will gain access to the banking system through these enhanced payment methods.

Transformation of Banking

Santhosh Rao, Senior Vice President at ACI Worldwide, marks India’s leadership in the global real-time payments market. In 2023, India recorded 129.3 billion transactions, showcasing the widespread adoption of this technology. Real-time payments have transformed banking in India, facilitating faster and smoother transactions while helping millions access formal financial services.

GKToday Notes:
ACI Worldwide: ACI Worldwide is a global provider of real-time electronic payment systems. It focuses on ensuring secure and efficient transactions across various financial institutions worldwide.
Centre for Economics and Business Research (CEBR): CEBR is a UK-based economic consultancy. It provides analysis and forecasts, influencing business strategies and public policy with its research findings.
Real-time Payments: Real-time payments allow instant money transfers between accounts. They enhance transaction speed and efficiency, impacting economies and banking systems globally.

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