Realtime payments are projected to contribute more than $15-billion in additional GDP growth to Nigeria and South Africa by 2028.
This is according to the RealTime Payments: Economic Impact and Financial Inclusion report published by ACI Worldwide, in collaboration with The Centre for Economics and Business Research (Cebr).
The report leverages data from 40 countries and reveals – for the first time – an empirical link between realtime payments and financial inclusion.
Realtime payments drive economic growth and give citizens access to fast and affordable financial services.
According to the report, realtime payments increased GDP across all 40 countries surveyed by $164-billion in 2023, equivalent to the labour output of 12-million workers.
Additionally, the associated financial inclusion uplift experienced by many countries as a result of increasing realtime transactions presents significant new revenue opportunities for financial institutions.
As Africa’s largest realtime payments market, Nigeria is reaping the biggest economic benefits, with realtime payments contributing $7-billion of additional GDP growth in 2023 – expected to grow to $15-billion by 2028.
The share of the banked population in Nigeria is expected to increase by 6,5% between 2021 and 2028, placing Nigeria in the top five nations worldwide for inclusion uplift and representing a potential increase of $40-billion in profits for banks.
The potential for banks extends beyond regions with large unbanked populations.
By 2028, South Africa – already at 84% banking penetration – could add 425 000 previously excluded individuals to the financial system. This modest 0,8% growth represents a remarkable $899-million profit opportunity for banks.
As Africa’s second-largest economy, South Africa is also a rising leader in realtime payments, with their contribution to GDP expected to more than double to $486-million by 2028, highlighting the transformative power of financial inclusion and innovation.
“Africa offers immense potential to transform its financial ecosystem through realtime payments,” says Santhosh Rao, senior vice-president of sales for MEASA at ACI Worldwide. “Realtime payments bring more than convenience – they are a catalyst for economic empowerment, enabling citizens and businesses to access affordable, seamless financial services that drive growth and opportunity.
“Amplifying this transformative potential is the collaboration between Africa’s visionary entrepreneurs, innovators and governments. Together, they are laying the groundwork for an inclusive and sustainable future, where shared vision and cooperation become the engines of progress and prosperity across the continent.”
Globally, realtime payments are expected to contribute $285,8-billion in additional GDP growth – a 74,2% increase over five years – and create more than 167-million new bank account holders by 2028.
The report demonstrates how realtime payments present a win-win proposition for everyone globally, not just for the financial sector but for the wider economy.