In this article, dedicated to Instant payment, we will delve into a fascinating topic that has captured the interest of people around the world. Along these lines, we will explore the most relevant and impactful aspects related to Instant payment, diving into its history, characteristics and current challenges. From its origins to its current situation, we will analyze in depth the importance of Instant payment and its influence in different areas. Through this journey, we hope to provide a comprehensive and enriching vision of Instant payment, inviting our readers to reflect and learn more about this exciting topic.
Instant payment (sometimes referred to as real-time payment or faster payment) is a method of electronic funds transfer, allowing for almost immediate transfer of money between bank accounts. This was in contrast to the previous transfer times of one to three business days that had been in place until the mid-2010s.
Since the mid-2010s many countries have implemented instant payment systems that speed up the transfer between bank accounts in response to customer demand for faster transactions.
The Euro Retail Payments Board (ERPB) in 2018 defined 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).
Originally clearing of payments was based on the cheque clearing cycle that required physical cheques to be exchanged by banks at clearing houses for payments to be made between bank accounts. When electronic payments entered the banking systems from the 1970s onwards, the same timeframes and processes were used to settle these electronic payments.
The growth of e-commerce since the 2000s has caused a change in people's spending patterns and expectations. Shopping is no longer confined to regular business hours, creating new challenges for funds transfers. Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands.
Traditional electronic payments like bank transfers, that perform the electronic funds transfers within a few business days, are not in line with user expectations.
Name | Country | Launched | Payment Sources | Identifiers | Notable Features | Transaction Volume per year (in billions) |
---|---|---|---|---|---|---|
New Payments Platform (NPP) | Australia | 2018 | Bank Account | Phone number, email or Australian Business Number | Recurring Payments | 1.2 (2022) |
Pix | Brazil | 2020 | Bank Account | QR code | Get change as cash at merchants (Pix Troco) | 42 (2023) |
Internet Banking Payment System (IBPS) | China | 2010 | Bank Account | QR Code | Recurring Payments | 18 (2022) |
MobilePay | Denmark | 2013 | Bank Account | Mobile Number | Common app for users of all banks, ability to chat. | - |
MobilePay | Finland | 2013 | Bank Account | Mobile Number | Common app for users of all banks, ability to chat. | - |
Faster Payment System (FPS) | Hong Kong | 2018 | e-wallet, Bank Account | QR Code | Supports both Hong Kong Dollar & Chinese Yuan Renminbi | 0.531 (2023) |
GIRO Zrt | Hungary | 2020 | Bank Account | Bank Account Number
Mobile Number Tax Number |
- | |
Unified Payments Interface (UPI) | India | 2016 | Bank Account
Prepaid Wallet Credit Card Credit Line |
QR Code
NFC UPI ID Mobile Number Bank Account Number with IFSC |
Recurring Payments (UPI AutoPay)
Foreign Inward Remittance Payments without Internet/Network (UPI Lite X) UPI OneWorld (for tourists) ATM Withdrawal |
117.6 (2023) |
Immediate Payment Service (IMPS) | India | 2010 | Bank Account | Mobile Money Identifier (MMID) | Foreign Inward Remittance (FIR) | 5.8 (2023) |
ZENGIN | Japan | 1973 | Bank Account | Account Number | Inward Remittance | 3 (2023) |
CliQ | Jordan | 2020 | Bank Account | IBAN
Account number Alias |
0.03 (2023) | |
Raast | Pakistan | 2019 | Bank Account | IBAN | 0.16 (2023) | |
InstaPay | Philippines | 2018 | Bank Account | QR Code
Account Number and Recipient's Bank Name Mobile Number Email ID |
0.74 (2023) | |
PESONet | Philippines | 2017 | Bank Account | Account Number and Recipient's Bank Name | 0.08 (2023) | |
Bilk | Poland | 2015 | Bank Account | NFC | ATM Withdrawal & Deposit
Recurring Payments |
0.51 (2023) |
Fast and Secure Transfers (FAST) | Singapore | 2014 | Bank Account | Bank Account Number with Bank Code | 0.29 (2022) | |
PayNow | Singapore | 2017 | Bank Account | QR Code | International Remittance | 0.31 (2022) |
Bizum | Spain | 2016 | Bank Account | Mobile Number | Direct Donations to NGOs | 1 (2022) |
Swish | Sweden | 2012 | Bank Account | QR Code | - | |
Twint | Switzerland | 2017 | Bank Account | QR Code | 0.59 (2023) | |
PromptPay | Thailand | 2021 | Bank Account | QR Code
Mobile Number |
3.6 (2023) | |
Faster Payment Service (FPS) | United Kingdom | 2008 | Bank Account | Account Number and Recipient Name
QR Code |
Forward dated payments
Standing orders |
4.5 (2023) |
Zelle | United States | 2017 | Bank Account | Email
Mobile Number |
2.3 (2022) | |
FedNow | United States | 2023 | Bank Account | |||
EasyPay | Ukraine | 2009 | Bank Account | Mobile Number | 0.05 (2021) |
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