ACI Worldwide Report: Middle East Continues to Lead Global Real-Time Payments Market in Growth for Second Year in a Row

The Middle East Emerges as the Fastest-Growing Real-Time Payments Market Globally

In a groundbreaking development, the Middle East has solidified its position as the fastest-growing real-time payments market globally for the second consecutive year. According to the 2024 Prime Time for Real-Time report published by ACI Worldwide in partnership with GlobalData, the region is experiencing a rapid transformation in its financial landscape, driven by the adoption of real-time payment schemes.

Real-time payments are quickly becoming the cornerstone of modern economies in the Middle East, with governments in the region implementing innovative payment solutions that are revolutionizing the way businesses and consumers conduct transactions. The region witnessed a remarkable year-on-year growth of 33.6% in 2023, with 855 million real-time payment transactions recorded. This figure is projected to soar to 3 billion by 2028, representing a compound annual growth rate (CAGR) of 28.8% from 2023 to 2028.

Last year marked a significant milestone as Oman, Kuwait, and Qatar each launched their national real-time payment schemes, joining established players such as Saudi Arabia, Bahrain, and the UAE. With all six Gulf Cooperation Council (GCC) member states now running real-time payment programs, the transaction value in the Middle East is expected to surge from US$230 billion in 2023 to US$903 billion by 2028.

Bahrain stands out as one of the most developed payment markets in the region, with real-time payments accounting for nearly 50% of the total payment volume in the country. The majority of electronic payments in Bahrain are also conducted through real-time payment systems, highlighting the country’s advanced financial infrastructure.

Santhosh Rao, Senior Vice President of Sales at ACI Worldwide MEASA, emphasized the transformative impact of real-time payments on the region’s economy. Rao highlighted that real-time payments eliminate payment friction, inject liquidity into the system, and promote economic growth and financial inclusion. However, he stressed that to fully leverage the potential of real-time payments, banks in the Middle East must modernize and future-proof their infrastructure.

The surge in real-time and electronic payments signals the Middle East’s shift towards a cashless economy. Electronic transactions dominated the region in 2023, accounting for over 50% of all transactions and a staggering 95% of the transaction value. Real-time payments accounted for 12% of the region’s electronic transactions last year, a figure projected to increase to 22% by 2028, surpassing Europe and North America.

Rao emphasized the importance of collaboration in fostering a thriving real-time payment ecosystem, where banks must strike a balance between competition and cooperation with emerging market players. Drawing on successful real-time payment schemes globally, Rao encouraged financial institutions in the Middle East to study these successes and launch their own innovative payment solutions.

As the Middle East leads the world in real-time payments growth, the region is poised to become a trailblazer in the global financial landscape, paving the way for a cashless economy and driving economic prosperity and financial inclusion for businesses and consumers alike.