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
 Hungary GIROInstant - available since 2020 [10]
 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,[11] available from 2019
 Sweden Swish,[12][13] since 2012, retail since 2014
  Switzerland Twint,[14] since 2017
 Thailand PromptPay, which is operated by VocaLink[15]
 United Kingdom Faster Payments Service (FPS), available since 2008, which is operated by VocaLink
 United States Zelle,[16] available since 2016 and
Venmo,[17] available since 2013 and
The Clearing House's RTP - Real-Time Payments,[18] available since 2017 and
FedNow, launched in mid-2023[19]

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. "Instant Payments". MNB. Retrieved 25 October 2023.
  11. "В России запустили систему быстрых платежей", Российская газета, 28 January 2019, retrieved 28 January 2019
  12. "Swish - Betala enklare". Swish (in Swedish). Retrieved 2 April 2018.
  13. "Swish". Nationalencyklopedin.
  14. "Simply Twint it".
  15. "Transforming Thailand to a digital economy".
  16. "Zelle, the Banks' Answer to Venmo, Proves Vulnerable to Fraud", April 22, 2018, The New York Times, retrieved February 10, 2020
  17. "Venmo Revenue and Usage Statistics (2021)", Business of Apps, 2 September 2020, retrieved 2 September 2020
  18. "Real Time Payments", Theclearinghouse.org, retrieved 21 September 2021
  19. "Federal Reserve Board - FedNow Service". Board of Governors of the Federal Reserve System. Retrieved 26 October 2022.
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