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 (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][by whom?] that, in the next year,[when?] 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[]
Country | System |
---|---|
Australia | NPP - New Payments Platform,[7] available from February 2018 |
Brazil | Pix, released in October 2020 and available since November 2020 |
China | - Internet banking payment system,[8] implemented in 2010 |
Denmark | MobilePay, since 2013 |
Europe | RT1, available from November 2017 and - 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 | , implemented in 1973 |
Norway | Vipps, since 2015. |
Philippines | |
Russia | [10] available from 2019 | - Fast Payments System,
Sweden | Swish,[11][12] since 2012, retail since 2014 |
United Kingdom | Faster Payments Service (FPS), available since 2008, which is operated by VocaLink |
United States | Zelle,[13] available since 2016 and Venmo,[14] available since 2018 and - Real-Time Payments,[15] available since 2017 |
See also[]
- Cryptocurrency
- European Central Bank
- EBA Clearing
- SWIFT for NPP
References[]
- ^ a b "Are instant payments becoming the new normal? A comparative study" (PDF). European Central Bank. Retrieved 5 August 2020.
- ^ "Instant payments definition". www.ecb.europa.eu. European Central Bank. 2017. Retrieved 8 September 2018.
- ^ "Digital transformation of the retail payments ecosystem" (PDF). www.bancaditalia.it. Banca d'Italia. 30 November 2017. p. 3. Retrieved 2 September 2018.
- ^ "What are instant payments?". www.instapay.today. InstaPay. 2018. Retrieved 2 September 2018.
- ^ PYMNTS (1 January 2019). "2019: The Year Of Instant Payments". PYMNTS.com. Retrieved 20 August 2019.
- ^ "Instant payments are the future - here's why". insights.nordea.com. Nordea. 2018. Retrieved 2 September 2018.
- ^ "The New Payments Platform", Reserve Bank of Australia, retrieved 21 September 2021
- ^ Bis.org (PDF) https://www.bis.org/cpmi/publ/d105_cn.pdf, retrieved 21 September 2021
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(help) - ^ "В России запустили систему быстрых платежей", Российская газета, 28 January 2019, retrieved 28 January 2019
- ^ "Swish - Betala enklare". Swish (in sv-SE). Retrieved 2 April 2018.
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: CS1 maint: unrecognized language (link) - ^ "Swish". Nationalencyklopedin.
- ^ "Zelle, the Banks' Answer to Venmo, Proves Vulnerable to Fraud", April 22, 2018, The New York Times, retrieved February 10, 2020
- ^ "Venmo Revenue and Usage Statistics (2021)", Business of Apps, 2 September 2020, retrieved 2 September 2020
- ^ "Real Time Payments", Theclearinghouse.org, retrieved 21 September 2021
- Securities clearing and depository institutions
- Payment networks
- Payment systems