Instant payment

Instant payment (sometimes referred to as real-time payment or faster payment) is a method of exchanging money and processing payments, allowing for almost immediate transfer of money between bank accounts, instead of the more typical one to three business days.[1]

Many countries have implemented instant payment systems, and many instant payment systems and platforms are currently under development worldwide, due to increased need for faster and reliable transactions.[1]

The Euro Retail Payments Board (ERPB) define instant payments as:

Electronic retail payment solutions available 24/7/365 and resulting in the immediate or close-to-immediate interbank clearing of the transaction and crediting of the payee’s account with confirmation to the payer (within seconds of payment initiation).[2]

Background

The growth of e-commerce has caused changes in people's spending patterns. Shopping is no longer confined to regular business hours, creating new challenges for funds transfers.[3] Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands.[4]

Traditional electronic payments like simple bank transfers, that perform the electronic funds transfer within few business days, are not in line with user expectations. It is predicted[5] that, in the next year, instant payments will become the standard for electronic fund transfers, where customers will be able to digitally access their insurers and manage their funds.[6]

Examples
CountrySystem
 Australia NPP - New Payments Platform,[7] available from February 2018
 Brazil Pix, released in October 2020 and available since November 2020
 China IBPS - Internet banking payment system,[8] implemented in 2010
 Denmark MobilePay, since 2013
 Europe RT1, available from November 2017 and
TIPS - TARGET Instant Payments Settlement,[9] available from November 2018
 Hong Kong Faster Payment System - available since 2018
 India IMPS - Immediate Payment Service, implemented in 2010 and
UPI - Unified Payments Interface, implemented in 2016
 Japan ZENGIN, implemented in 1973
 Norway Vipps, since 2015.
 Philippines InstaPay
 Pakistan Raast since 2019
 Poland Blik since 2015
 Russia Sistema bystrykh platezhey - Fast Payments System,[10] available from 2019
 Sweden Swish,[11][12] since 2012, retail since 2014
 Switzerland Twint,[13] since 2017
 Thailand PromptPay, which is operated by VocaLink[14]
 United Kingdom Faster Payments Service (FPS), available since 2008, which is operated by VocaLink
 United States Zelle,[15] available since 2016 and
Venmo,[16] available since 2013 and
The Clearing House's RTP - Real-Time Payments,[17] available since 2017 and
FedNow, to launch in mid-2023[18]

See also

References
  1. "Are instant payments becoming the new normal? A comparative study" (PDF). European Central Bank. Retrieved 5 August 2020.
  2. "Instant payments definition". www.ecb.europa.eu. European Central Bank. 2017. Retrieved 8 September 2018.
  3. "Digital transformation of the retail payments ecosystem" (PDF). www.bancaditalia.it. Banca d'Italia. 30 November 2017. p. 3. Retrieved 2 September 2018.
  4. "What are instant payments?". www.instapay.today. InstaPay. 2018. Retrieved 2 September 2018.
  5. PYMNTS (1 January 2019). "2019: The Year Of Instant Payments". PYMNTS.com. Retrieved 20 August 2019.
  6. "Instant payments are the future - here's why". insights.nordea.com. Nordea. 2018. Retrieved 2 September 2018.
  7. "The New Payments Platform", Reserve Bank of Australia, retrieved 21 September 2021
  8. Bis.org (PDF) https://www.bis.org/cpmi/publ/d105_cn.pdf, retrieved 21 September 2021 {{citation}}: Missing or empty |title= (help)
  9. Ecb.europa.eu/paym/groups/shared/docs/d8dd9-ami-pay-_20170209_item07b_presentation_on_tips.pdf (PDF) https://www.ecb.europa.eu/paym/groups/shared/docs/d8dd9-ami-pay-_20170209_item07b_presentation_on_tips.pdf, retrieved 21 September 2021 {{citation}}: Missing or empty |title= (help)
  10. "В России запустили систему быстрых платежей", Российская газета, 28 January 2019, retrieved 28 January 2019
  11. "Swish - Betala enklare". Swish (in Swedish). Retrieved 2 April 2018.
  12. "Swish". Nationalencyklopedin.
  13. "Simply Twint it".
  14. https://b2b.mastercard.com/stories/thailand-promptpay/. {{cite web}}: Missing or empty |title= (help)
  15. "Zelle, the Banks' Answer to Venmo, Proves Vulnerable to Fraud", April 22, 2018, The New York Times, retrieved February 10, 2020
  16. "Venmo Revenue and Usage Statistics (2021)", Business of Apps, 2 September 2020, retrieved 2 September 2020
  17. "Real Time Payments", Theclearinghouse.org, retrieved 21 September 2021
  18. "Federal Reserve Board - FedNow Service". Board of Governors of the Federal Reserve System. Retrieved 26 October 2022.
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