Real-time payments: Paving the path from financial inclusion to financial wellbeing

In a world where financial exclusion still affects millions, real-time payments are proving to be a transformative force. Research shows that 167 million people previously excluded from banking could have bank accounts by 2028, driven by real-time payments technology. These systems enable instant transactions, unlocking basic banking access for underserved populations, especially women, youth, and very low-income citizens.

While real-time payments are paving the way for financial inclusion, this is just the beginning. To uplift communities, central banks recognize they must look beyond basic banking access. But how can they ensure that financial inclusion leads to lasting financial wellbeing? Let’s explore.

Expanding access through real-time payments

Our research across global markets, including the eleven where Mastercard is powering real‑time payments, shows that they are generally used for peer-to-peer (P2P) transactions or self-transfers (Me-to-Me), like transferring money into a digital wallet. These advancements expand access, enabling more people to participate in the digital economy.

However, fostering innovation and competition to develop affordable financial services remains a challenge in many markets. A lack of education and awareness also limits the ability to fully leverage financial tools. Without addressing these limitations, real-time payments alone are unlikely to help drive lasting financial stability.

Helena Forest, Executive Vice President of Real-Time Payments Product and Commercialization at Mastercard, explains: “Achieving financial wellbeing demands more than initial access – it requires collaboration between regulators, banks, and fintechs to drive meaningful innovation. Our services are designed to enable accessibility, interoperability, and scalability, empowering financial institutions to innovate and thereby enabling individuals to build financial security.”

Empowering individuals to take control of their financial future

Real-time payments unlock access to various services, including credit, savings accounts, insurance, and financial education. For those heavily reliant on cash, real-time payments offer a path to financial inclusion. Women gain control, improving their and their families’ futures. Lower-income individuals break down barriers like distance and the costs of opening bank accounts. Real-time payments help build credit histories and save for the future.

Driving growth for small businesses with real-time payments

Real-time payments also extend beyond personal transactions, providing the same transformative potential for entrepreneurs. They can significantly support small businesses, such as local stores and freelancers, to get paid instantly. Micro and small businesses often rely on person-to-person (P2) payments to receive payments for goods and services. While this is convenient, it does not provide the same level of financial security and growth opportunities as having access to business banking services. These businesses need access to loans, merchant services, and digital tools to manage their finances effectively.

By offering these services, financial institutions can help small businesses grow and thrive, which creates more economic opportunity and development in their communities.

The future of financial inclusion: technology and partnerships

To drive financial wellbeing, markets need an ecosystem supporting the diverse financial needs of the unbanked and underbanked. Leveraging technology to provide innovative solutions accessible and affordable is crucial. Mobile banking apps can offer services like budgeting tools, microloans, and bill payments. Real-time bill payments offer a more efficient way to manage recurring expenses, helping individuals avoid late fees and enabling financial control and stability. Partnerships between financial institutions and fintech companies can bridge this gap by offering tailored solutions addressing the unique challenges faced by these populations.

A more inclusive and resilient financial ecosystem

While real-time payments are a critical component for financial inclusion, they are not a panacea. Achieving true financial wellbeing requires a comprehensive suite of financial services beyond basic transactions. Opening access and enabling interoperability can create the right environment for the development of new use cases. By supporting the financial needs of individuals and small businesses, we can create a more inclusive and resilient financial ecosystem.

To learn more about how real-time payments are transforming the financial landscape, download our full white paper on What’s next in real-time payments today.