Payments technology company ACI Worldwide says in its 'Real-Time Payments: Economic Impact and Financial Inclusion' report that the contribution of real-time payments to South Africa's GDP is expected to more than double to $486-million by 2028.

Real-time payments drive economic growth and give citizens access to fast and affordable financial services. The potential for banks extends beyond regions with large unbanked populations, the company notes.

For example, by 2028, South Africa, which is already at 84% banking penetration, could add 425 000 previously excluded individuals to the financial system. This modest 0.8% growth represents an $899-million profit opportunity for banks, highlighting the transformative power of financial inclusion and innovation, the report shows.

“Africa offers immense potential to transform its financial ecosystem through real-time payments. Real-time payments are a catalyst for economic empowerment by enabling citizens and businesses to access affordable, seamless financial services that drive growth and opportunity,” says ACI Worldwide Middle East, Africa and South Asia Sales senior VP Santhosh Rao.

“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,” he said.

Further, real-time 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 real-time transactions presents significant new revenue opportunities for financial institutions.

Globally, real-time payments are expected to contribute $285.8-billion in additional GDP growth, which is a 74.2% increase over five years, and create more than 167-million new bank account holders by 2028.

The report demonstrates how real-time payments present a win-win proposition for everyone globally, not just for the financial sector but for the wider economy.