Real-time payments are forecast to add $3.8bn to UK GDP by 2026 (0.11% of formal UK GDP) according to a study by ACI Worldwide and the Centre for Economics and Business Research (Cebr)
The ‘untapped potential’ of real-time payments in the UK is much higher. Cebr’s economic impact study reveals that the theoretical impact of all UK payments being real-time would boost the country’s GDP by up to 2.7%
The UK lags the developing world in real-time payments growth and associated economic benefits due to the UK’s ageing payments infrastructure
UK financial institutions are being urged to get behind the ‘New Payments Architecture” modernisation programme or risk falling even further behind the rest of the world
Upgrading the UK’s ageing payments infrastructure and increasing real-time payments adoption are forecast to boost the UK economy by $3.8 billion – 0.11% of formal GDP – by 2026, according to a new study published by ACI Worldwide, (NASDAQ: ACIW), Global Data, and the Centre for Economics and Business Research (Cebr).
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According to the Cebr, the ‘untapped potential’ of real-time payments in the UK is enormous – the theoretical impact of all payments being real-time could boost the UK’s economy by up to $98.0 billion in 2026, or 2.7% annually.
The findings come after the latest UK GDP figures from the Office for National Statistics continue to show sluggish output for the UK economy in 2022 and follow recent IMF forecasts suggesting the UK is set to have the weakest growth in the G7 next year.
The research highlights the importance of the UK ‘New Payments Architecture’ programme which will bring sweeping changes to the UK’s payments infrastructure over the next 5 years with the aim to enable more innovation and foster competition among UK financial services providers. Led by Pay.UK, NPA is seeking to modernise the UK’s legacy payment infrastructure by delivering real time account-to-account payments that provide consumers with more choice and newer, innovative payments options over more traditional payment types such as cards.
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Although real-time account-to-account payments continue to grow in the UK – the number of payments processed by Faster Payments (FPS) increased by 23% to 3.6 billion in 2021 – the research shows that growth rates for real-time transactions are higher in many other countries, mainly due to the popularity of new digital overlay services built on real-time rail which have enjoyed rapid adoption among consumers and businesses. Therefore, many emerging and developing countries are leapfrogging the UK to reap the full economic benefits that real-time account-to account payments bring.
ACI’s Prime Time for Real-Time report, co-authored with Global Data, a leading global data and analytics company, includes the most comprehensive economic impact study to date and highlights a clear correlation between real-time payments adoption and economic growth.
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