The need for speed: How real-time payments are transforming global businesses

August 21, 2025

Author

Jon Purther

Director of Research at Payments Canada

Jon’s career encompasses more than 25 years of senior management experience in forensic research and strategic marketing management, including domestic and international assignments. With Payments Canada, Jon is spearheading a team involved in both strategic foresight and product/market research.

DISCLAIMER: This article is written to reflect the interests and views of the author and is not intended as an official Payments Canada statement or position

Consider a situation where your business needs to send or receive a significant sum of money and it absolutely must be completed immediately. There is no time to wait days, or even hours, to get it done. It simply needs to be finalized right now.

Imagine the various circumstances that could benefit from an instant payment experience — paying a supplier, receiving payment for your products or services, transferring funds to a business bank account in Canada or a foreign country — thereby ensuring confidence that there would be no delay before the payment and supporting data is received by its intended recipient.

In a recent global business study by BNY Melon and Datos Insights, it was discovered that more than 75 per cent of respondents believe that payments made in real-time will make for a better customer experience, with the majority finding it useful for urgent past-due payments.¹

In our own Payments Behaviour Tracker, Payments Canada uncovered the fact that close to three in ten small and medium-sized enterprises (SMEs) (29 per cent) identified delays in incoming or outgoing payments as their number one payment pain point experienced in the past six months.²

All of this points to the need for speed — a way to make payments and get paid instantly 24/7, 365 days a year, a way where one can safely and securely send money from one account to another account within seconds, to avoid any postponement before the payment and corresponding data is received.

“Imagine sending and receiving payments instantly, twenty-four hours a day, seven days a week, for any amount. Consumers could make payments at the last minute and avoid late fees that arise from bill payments that might have been initiated but not received yet. Workers would have access to their paycheques immediately to make purchases. And small businesses could use the funds received instantly to manage their cash flow needs more efficiently.”

— C.D. Howe Institute, December 2023

Looking at payments made outside the Canadian borders, we see many cases where real-time payments are already a reality.

According to ACI Worldwide, there were 266.2 billion real-time payment transactions globally in 2023 — a 42.2 per cent increase over the previous year. This volume is projected to grow at a compound annual growth rate (CAGR) of 16.7 per cent, reaching 575.1 billion transactions by 2028.³ According to the established professional services firm EY, “The deployments of real-time payments (RTP) are at an all-time high due to innovations in technology, changes in regulations and customer demand for easier access to funds.”⁴

To put the need for speed in the business sector in greater context, let’s look at some examples of what’s happened globally, and then how that might impact the Canadian market moving forward.

India

To achieve faster payments and a reduced reliance on cash, real-time payments were introduced in 2016 with the United Payments Interface UPI), developed by the National Payments Corporation of India (NPCI).

The impact on the payment ecosystem was substantial. Real-time payments are now offered by 673 participating banks, serving over 500 million users. In fiscal year 2023–24, there were almost 131 billion real-time payments—representing 46 per cent of global real-time transactions, with year-over-year growth of 57 per cent.^5,6,7

“Real-time payments have come a long way in India, evolving from a nascent concept to a robust and ubiquitous system that has transformed the way we conduct financial transactions.”

— BFSI / Economic Times, May 2023

For Indian businesses, the increase in payment speed was just one of many benefits, as this introduction also led to an improvement in operational efficiencies and cash flow management. Growth to date in the business sector, most notably B2P transactions, has been driven by key innovations, including the use of QR codes for payment initiation, the use of digital wallets on mobile devices at the point-of-sale and linking their real-time payment system with that of other global payment operators.

Brazil

A vision for digital payments to drive an efficient economy led to the instant payment system, Pix, managed and operated by the Central Bank of Brazil and mandated for use by all Brazilian banks.

While only launched in late 2020, real-time payments have become a primary payment method, with notable growth in B2B and P2B transaction types. Pix has rapidly transformed Brazil’s payment landscape: as of Q1 2025, it boasts over 570 million registered keys (user-linked identifiers like phone numbers or tax IDs) linked to more than 150 million active users. In 2024, Brazil processed approximately 64 billion Pix transactions — about five times the combined number of debit and credit card payments — accounting for roughly 46 percent of global real-time transaction volume, with year‑over‑year growth of approximately 53 per cent.^8.,9 As a result, the phrase “Send a Pix” has become a common local expression.

“Many people in the low-income bracket, small enterprises or micro-entrepreneurs rely a lot on Pix... It brought more people into the financial system.”

— Ceres Lisboa, Moody’s, September 2023

For Brazilian businesses, fast and inexpensive real-time payments have significantly reduced processing times and improved cash flow. Further growth in the business sector is being strengthened by ongoing innovation, including QR code payments directed to digital wallets, payments linked to their open banking system and the payment of invoices through a request-to-pay facility. In addition, their ‘Evolutionary Pix Agenda’ includes a plan to pay installments and recurring payments in real-time, plus the aim to connect Pix with instant payment systems in other countries.

United Kingdom

The evolution of real-time payments, or “faster payments” as it is referred to in the UK, was an initiative to tackle the increasing demand for quicker and more efficient payment transactions, coupled with a rapid decline in cash use, a domination of credit/debit cards and a rapidly growing mobile payment market. The Faster Payments Service (FPS) was launched in 2008 by the UK Payments Council, with the infrastructure built and operated by VocaLink. Since 2018, Pay.UK has served as the designated operator and governing body responsible for setting and maintaining the rules and standards of FPS, following the consolidation of the UK’s retail payments governance.

The FPS is widely considered one of the first 24/7, 365-days-a-year, real-time payment systems in the world.¹⁰ The Faster Payments Service (FPS) operates 24/7, 365 days a year, with more than 46 direct participants as of early 2025, providing access to over 50 million users. In 2024, FPS processed approximately five billion transactions—accounting for about 9 per cent of the UK’s total payment volume. The system eclipsed 4.6 billion transactions in 2023, and ACI Worldwide forecasts this volume will reach around 6.3 billion by 2028, growing at a compound annual growth rate of approximately 9 per cent.¹¹

“Today, almost 14 years later, everything from socks to high-end household appliances can be bought within seconds via a smartphone. Modern payment rails, which enable real-time clearing and settlement, are a requirement of our modern, digital age. Remembering a time when payments could take days is like trying to recall what it was like to travel via a horse and carriage.”

— The Banker, February 2022

For UK businesses, real-time payments have flourished, most notably for B2B and B2P transactions. This is because they offer the combination of speed, convenience, lower costs relative to other payment methods and increased security. Plus, continued innovation has led to a request-to-pay capability and a confirmation-of-payee functionality to assist in mitigating fraud and curtailing misdirected payments. Expansion will further be driven by a New Payments Architecture targeted for 2025, that will be both ISO 20022 compliant and interoperable across both domestic and international payment systems.

United States

Closer to home, the US exploits the speed of real-time payments with the RTP platform, first launched in 2017 by The Clearing House. It is now widely accessible by financial institutions that hold the bulk of US deposit accounts, and currently serves over 285,000 businesses, nearly double the number from 2022.¹²

In Q2 2024 alone, the real-time transaction value increased by approximately 90 per cent compared to the previous year, rising from $29 billion to $55 billion.¹³ Future plans include cross-border capabilities, already in pilot mode.

Launched in July 2023, the Federal Reserve’s FedNow Service has quickly become a key player in the US real-time payments landscape. Supporting P2P, B2C, and C2B transactions—including a request-to-pay feature—and aiming for interoperability with other payment systems, FedNow already counts over 1,300 financial institutions among its participants nationwide. Usage is growing rapidly: in the first quarter of 2025 alone, it processed more than 1.3 million transactions valued at $48.6 billion, averaging $540 million daily.¹⁴ Reflecting its transformative potential, the Federal Reserve Bank of St. Louis has called FedNow “a once-in-a-generation innovation” that will fundamentally reshape banking.”¹⁵

“Based on a large-scale survey of 1,420 finance leaders at businesses with revenue of over $100 million, the new US Bank report reveals that 42 per cent are using real-time payments through the RTP® network — up from 38 per cent in our 2022 study. But more than two-thirds (68 per cent) of companies say they expect to use instant payments via RTP or the Federal Reserve’s newly-launched FedNow® Service over the next two years.”

— U.S. Bank, 2023

Overall, US expectations for further real-time payment growth are highly optimistic. Forbes recently reported that real-time transactions from all North American platforms are expected to grow to 13 billion by 2027, or a CAGR of over 27 per cent.¹⁶

Canada

With lessons learned from many global regions that have launched real-time payments, including those mentioned above, Payments Canada is actively working to deliver real-time payments in Canada with the Real-Time Rail (RTR), which will be overseen by the Department of Finance Canada and the Bank of Canada. When available, this system will drive secure Canadian-dollar payments within seconds, and will be capable of reaching nearly every bank account in Canada. Each transaction will be conducted on an irrevocable basis, and will leverage ISO 20022 financial messaging standards to allow for rich remittance data. The system will also be one of the first real-time payment systems to launch with centralized fraud services, including confirmation-of-payee, central risk lists, reporting and analytics.

Why is this so important for businesses in our country? With real-time payments, they will have more control over their finances. With an irrevocable payment, it will reduce payment risk so that the payee and recipient have certainty that the money has been transferred, and that the associated goods or services can be provided. Additionally, ISO 20022-enabled payments will permit a broader range of standardized data to be exchanged, making payment reconciliation easier and faster.

“Cash flow is the lifeblood of any business. When business owners need access to their hard-earned funds, they routinely face frustrating delays. The good news is that there is a shared vision for a modern payment ecosystem in Canada, one in which business owners no longer wait days for their earnings. With a Real-Time Rail, it’s possible for money to move in “real-time,” which means business owners get access to their funds in seconds. This has real potential to address the unmet needs of businesses across Canada, especially small business owners who work tirelessly to serve us in our communities.”

— Grace Jung, Block, Inc.¹⁷, April 2024

According to our Payments Behaviour Tracker, Canadian businesses foresee real benefits to sending and receiving payments in real-time. In the use case of a business making a payment to a supplier after ordering goods or services, almost three in four businesses (74 per cent) stated that a real-time payment option would be both innovative in the market and appealing to their business.¹⁸ Businesses also reported that they would likely use real-time payments for paying the government and their employees, as well as when receiving payments from the government and their customers.

From the global examples above, we have also learned that real-time payments will enable innovation from all participants who leverage them. Potential payment offerings that may make their way to Canada include a request-to-pay facility, additional centralized fraud solutions, QR-code payments and immediate cross-border payments. It is expected that over time, real-time payments will dramatically change the Canadian payment landscape in similar ways as it has across the globe, and in unique ways for the Canadian-specific marketplace. It has the potential to transform Canada’s economy, giving businesses (and consumers) a speedy payment experience, more transparency and access to their payments any day, any time, on a safe and secure basis.

Currently, Payments Canada is preparing new potential members for their participation on the RTR. For more information, payment service providers, credit union locals and clearing houses in Canada can contact us by email at info@payments.ca. More participants on the system are beneficial for everyone, and we welcome the opportunity to speak with new members.

¹ BNY Mellon and Datos Insights, Global Survey on the Growth and Future of Real-time Payments, September 2023
² Payments Canada, Payments Behaviour Tracker - Business, April 2025.
³ ACI Worldwide, Prime Time for Real-Time 2024, April 2024
⁴ EY, Accelerating the adoption of real-time payments, February 2023
⁵ NPCI’s UPI Product Statistics, NPCI Official Website, May 2025
⁶ Union Finance Minister of India, Ms. Nirmala Sitharaman, announced this data in April 2024, citing figures from the National Payments Corporation of India (NPCI).
⁷ PricewaterhouseCoopers, August 2024.
⁸ BusinessWire, January 2025
⁹ Matera, Q1 2025.
¹⁰ Stripe, Real-time payments explained, October 2023.
¹¹ Pay.UK, 2025, ACI worldwide, 2025.
¹² The Clearing House.
¹³ The Clearing House, July 2024.
¹⁴ The Federal Reserve, April 2025.
¹⁵ Federal Reserve Bank of St. Louis, FedNow: A Once-in-a-Generation Payments Innovation for the Fed, Sept. 2023.
¹⁶ Forbes, Real-Time FedNow Expected To Boost Instant Payments, April 2023.
¹⁷ At the time of publication Grace Jung is no longer with Block, Inc.
¹⁸ Payments Canada, Payments Behaviour Tracker, SMEs concerned with economic future, look to faster payments to improve efficiencies, October 2023.