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Instant payment

From Wikipedia, the free encyclopedia

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.[1]

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.[1]

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).[2]

History

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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.[3] Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands.[4]

Traditional electronic payments like bank transfers, that perform the electronic funds transfers within a few business days, are not in line with user expectations.[5][6]

Notable instant payment systems by country

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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)[7]
Pix  Brazil 2020[8] Bank Account[9] QR code

Pix Key/Alias[10]

Get change as cash at merchants (Pix Troco)[11]

Cash withdrawal (Pix Saque).[12]

42 (2023)[13]
Internet Banking Payment System (IBPS)  China 2010 Bank Account

e-wallet[14]

QR Code

Mobile Number[14]

Recurring Payments[14] 18 (2022)[15][14]
MobilePay  Denmark 2013 Bank Account Mobile Number Common app for users of all banks, ability to chat. -
MobilePay  Finland 2013 Bank Account[16] Mobile Number[16] Common app for users of all banks, ability to chat.[16] -
Faster Payment System (FPS)  Hong Kong 2018 e-wallet, Bank Account[17] QR Code

Mobile Number[17]

Supports both Hong Kong Dollar & Chinese Yuan Renminbi 0.531 (2023)[18]
GIRO Zrt  Hungary 2020 Bank Account[19] Bank Account Number

Mobile Number

Email

Tax Number

-
Unified Payments Interface (UPI)  India 2016 Bank Account

Prepaid Wallet

Credit Card

Credit Line

CBDC Stored Value[20]

QR Code

NFC

UPI ID

Mobile Number

Sound Pattern[21][22]

Bank Account Number with IFSC

Recurring Payments (UPI AutoPay)

Foreign Inward Remittance

Payments without Internet/Network (UPI Lite X)

Feature phone compatibility[23]

UPI OneWorld (for tourists)

ATM Withdrawal

117.6 (2023)[24][25]
Immediate Payment Service (IMPS)  India 2010[26] Bank Account[26] Mobile Money Identifier (MMID)[26]

Bank Account Number with IFSC.[26]

Foreign Inward Remittance (FIR)[27] 5.8 (2023)[28]
ZENGIN  Japan 1973 Bank Account[29] Account Number[29] Inward Remittance[30] 3 (2023)[30]
CliQ  Jordan 2020 Bank Account[31] IBAN

Account number Alias

0.03 (2023)[32]
Raast  Pakistan 2019 Bank Account IBAN

Mobile Number[33]

0.16 (2023)
InstaPay  Philippines 2018 Bank Account

e-wallet[34]

QR Code

Account Number and Recipient's Bank Name Mobile Number Email ID[34]

0.74 (2023)[35]
PESONet  Philippines 2017 Bank Account

e-wallet[36]

Account Number and Recipient's Bank Name

Mobile Number Email ID[37]

0.08 (2023)[35]
Blik  Poland 2015 Bank Account NFC

Dynamic Code[38]

ATM Withdrawal & Deposit

Recurring Payments

1.80 (2023)[39]
Fast and Secure Transfers (FAST)  Singapore 2014 Bank Account Bank Account Number with Bank Code[40] 0.29 (2022)[41]
PayNow  Singapore 2017 Bank Account QR Code

NRIC Mobile Number[42]

International Remittance 0.31 (2022)[43]
Bizum  Spain 2016[44] Bank Account[45] Mobile Number[45]

QR Code[45]

Direct Donations to NGOs[44] 1 (2022)[46]
Swish  Sweden 2012[47] Bank Account QR Code

Mobile Number[48]

-
Twint   Switzerland 2017[49] Bank Account QR Code

Mobile Number Dynamic Token[49]

0.59 (2023)[50]
PromptPay  Thailand 2021 Bank Account QR Code

Mobile Number

3.6 (2023)[51]
Faster Payment Service (FPS)  United Kingdom 2008 Bank Account Account Number and Recipient Name

QR Code

Forward dated payments

Standing orders

4.5 (2023)[52]
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)[53]

See also

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References

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  1. ^ a b "Are instant payments becoming the new normal? A comparative study" (PDF). European Central Bank. Retrieved 5 August 2020.
  2. ^ "Instant payments definition". ecb.europa.eu. European Central Bank. 2017. Retrieved 8 September 2018.
  3. ^ "Digital transformation of the retail payments ecosystem" (PDF). bancaditalia.it. Banca d'Italia. 30 November 2017. p. 3. Retrieved 2 September 2018.
  4. ^ "What are instant payments?". instapay.today. InstaPay. 2018. Archived from the original on 6 March 2017. 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. ^ Phu, Rita (4 November 2022). "NPP Roadmap provides update on the platform's uptake and capability development". NPPA. Retrieved 21 February 2024.
  8. ^ "Banco Central do Brasil". bcb.gov.br. Retrieved 21 February 2024.
  9. ^ "PIX - Payment Methods Encyclopedia - PayU Global". Retrieved 21 February 2024.
  10. ^ "PIX: The new instant payment system from BACEN | EBANX". ebanx.com. Retrieved 21 February 2024.
  11. ^ "PIX Troco (Change) | EBANX". ebanx.com. Retrieved 21 February 2024.
  12. ^ "What is the meaning of PIX Saque (Withdrawal)? | EBANX". ebanx.com. Retrieved 21 February 2024.
  13. ^ "Pix by the numbers 2023" (PDF).
  14. ^ a b c d "World Bank FPS China IBPS Case Study" (PDF).
  15. ^ "PYMNTS Real Time-Payments World Map October 2023" (PDF).
  16. ^ a b c "Lähetä rahaa". mobilepay.fi (in Finnish). Retrieved 21 February 2024.
  17. ^ a b "HKICL | FPS". fps.hkicl.com.hk. Retrieved 21 February 2024.
  18. ^ "HKICL | Statistics". fps.hkicl.com.hk. Retrieved 21 February 2024.
  19. ^ IO, Moon. "GIRO Zrt. - Az idő pénz". giro.hu (in Hungarian). Retrieved 21 February 2024.
  20. ^ "UPI QR Code-Central Bank Digital Currency interoperability: How does it work and how do customers benefit?". The Indian Express. 5 September 2023. Retrieved 21 February 2024.
  21. ^ Person 2 Merchant payment - VoiceSe powered by ToneTag, retrieved 21 February 2024
  22. ^ Tonetag - An app enabling offline voice payments - Nikhil Inamdar BBC WORLD, retrieved 21 February 2024
  23. ^ UPI123PAY to enable feature phone users to make digital payments, retrieved 21 February 2024
  24. ^ "RecordPay: UPI transactions crossed 100-billion mark in 2023". The Economic Times. 3 January 2024. ISSN 0013-0389. Retrieved 21 February 2024.
  25. ^ ETBFSI.com. "UPI payments at peak high in December, value of transactions rises - ET BFSI". ETBFSI.com. Retrieved 21 February 2024.
  26. ^ a b c d "IMPS (Immediate Payment Service) – Instant fund transfer | NPCI". npci.org.in. Retrieved 21 February 2024.
  27. ^ "FIR through IMPS". npci.org.in. Retrieved 21 February 2024.
  28. ^ "ProdIMPS Volumes | NPCI - National Payments Corporation of Indiauct Statistics". npci.org.in. Retrieved 21 February 2024.
  29. ^ a b The Foundation of the Financial System "Zengin System", retrieved 21 February 2024
  30. ^ a b "Zengin Statistics" (PDF).
  31. ^ "CliQ (System) | JOPACC". jopacc.com. Archived from the original on 23 February 2024. Retrieved 21 February 2024.
  32. ^ "Cliq December monthly report 2023 en" (PDF).
  33. ^ "RAAST Person to Person (P2P)". sbp.org.pk. Retrieved 21 February 2024.
  34. ^ a b "What is InstaPay and How Do I Use It? | Coins.ph". Coins Academy | Coins.ph. 14 October 2020. Retrieved 21 February 2024.
  35. ^ a b CEDadiantiTyClea (27 December 2023). "Transactions via PESONet, InstaPay reach P11.6 trillion". BusinessWorld Online. Retrieved 21 February 2024.
  36. ^ "PESONet". PPMI. Retrieved 21 February 2024.
  37. ^ "Your Guide to Using PESONet". bpi.com.ph. Retrieved 21 February 2024.
  38. ^ Blik. "First steps with BLIK". blik.com. Retrieved 21 February 2024.
  39. ^ "BLIK sums up 2023 – nearly 1.8 billion transactions and 3 million new users". blik.com (in Polish). Retrieved 30 July 2024.
  40. ^ "FAST".
  41. ^ "Singapore: FAST transactions volume 2022". Statista. Retrieved 21 February 2024.
  42. ^ "PayNow Explained: A Guide to Seamless Transactions in Singapore". Decentro. 17 November 2023. Retrieved 21 February 2024.
  43. ^ dpi.global https://www.dpi.global/globaldpi/singapore_paynow. Retrieved 21 February 2024. {{cite web}}: Missing or empty |title= (help)
  44. ^ a b "Bizum | Learn about us, our history and our mission". Retrieved 21 February 2024.
  45. ^ a b c "Bizum | Find out how it works and what will be used for". Retrieved 21 February 2024.
  46. ^ Corner. "Bizum Reaches 20 Million Users And 1 Billion Transactions | The Corner". Retrieved 21 February 2024.
  47. ^ "Swish - För en enklare vardag sedan 2012". Swish. Retrieved 21 February 2024.
  48. ^ "Swish - För en enklare vardag sedan 2012". Swish. Retrieved 21 February 2024.
  49. ^ a b "TWINT".
  50. ^ "Twint Stats 2023".
  51. ^ "Thailand: PromptPay transactions volume 2023". Statista. Retrieved 21 February 2024.
  52. ^ "Faster Payment System statistics". Pay.UK. Retrieved 21 February 2024.
  53. ^ EasyPay 2021 report
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