WikiDwarf at 13:51, 19 August 2023

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{{Short description|Method of exchanging money and processing payments}}
{{Use British English|date=February 2018}}
{{Use dmy dates|date=February 2018}}

'''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.<ref name="ECB">{{cite web |url=https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op229~4c5ec8f02a.en.pdf |title=Are instant payments becoming the new normal? A comparative study |author= |date= |website=[[European Central Bank]] |access-date=August 5, 2020}}</ref>

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.<ref name="ECB"/>

The [[Euro Retail Payments Board]] (ERPB) define '''instant payments''' as: {{blockquote|text=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).<ref name="definition">{{cite web |url=https://www.ecb.europa.eu/paym/retpaym/instant/html/index.en.html |title=Instant payments definition |publisher=European Central Bank |year=2017 |website=www.ecb.europa.eu |access-date=September 8, 2018}}</ref>}}

== 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.<ref>{{cite web |url=https://www.bancaditalia.it/pubblicazioni/interventi-governatore/integov2017/Visco_30112017.pdf |title=Digital transformation of the retail payments ecosystem|page=3 |publisher=Banca d'Italia |date=November 30, 2017 |website=www.bancaditalia.it |access-date=September 2, 2018}}</ref>
Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands.<ref>{{cite web |url=https://www.instapay.today/instant-payments/ |title=What are instant payments? |publisher=InstaPay |year=2018 |website=www.instapay.today |access-date=September 2, 2018}}</ref>

Traditional electronic payments like simple [[bank transfer]]s, that perform the [[electronic funds transfer]] within few business days, are not in line with user expectations.
It is predicted<ref>{{Cite web|url=https://www.pymnts.com/news/payment-methods/2019/instant-faster-disbursements-gig-economy/|title=2019: The Year Of Instant Payments|last=PYMNTS|date=2019-01-01|website=PYMNTS.com|language=en-US|access-date=2019-08-20}}</ref>{{by whom|date=August 2020}} that, in the next year,{{when|date=August 2020}} instant payments will become the standard for electronic fund transfers, where customers will be able to digitally access their insurers and manage their funds.<ref>{{cite web |url=https://insights.nordea.com/instant-payments-are-future-heres-why |title=Instant payments are the future - here's why |publisher=Nordea |year=2018 |website=insights.nordea.com |access-date=September 2, 2018}}</ref>

== Examples ==
{| class="wikitable sortable"
!Country!!System
|-
| {{flag|Australia}}
| [[New Payments Platform|NPP]] - New Payments Platform,<ref name="Reserve Bank of Australia_2021-09-21">{{Citation | url=https://www.rba.gov.au/payments-and-infrastructure/new-payments-platform/| title=The New Payments Platform| newspaper=Reserve Bank of Australia| date= | accessdate=2021-09-21}}</ref> available from February 2018
|-
| {{flag|Brazil}}
|[[Pix (electronic payment system)|Pix]], released in October 2020 and available since November 2020
|-
| {{flag|China}}
| [[Internet banking payment system|IBPS]] - Internet banking payment system,<ref name="Bis.org_2021-09-21">{{Citation | url=https://www.bis.org/cpmi/publ/d105_cn.pdf| newspaper=Bis.org| date= | accessdate=2021-09-21}}</ref> implemented in 2010
|-
| {{flag|Denmark}}
| [[MobilePay]], since 2013
|-
| {{flag|Europe}}
| [[EBA Clearing#RT1|RT1]], available from November 2017 and [[TARGET Instant Payments Settlement|TIPS]] - TARGET Instant Payments Settlement,<ref name="Ecb.europa.eu/paym/groups/shared/docs/d8dd9-ami-pay-_20170209_item07b_presentation_on_tips.pdf_2021-09-21">{{Citation | url=https://www.ecb.europa.eu/paym/groups/shared/docs/d8dd9-ami-pay-_20170209_item07b_presentation_on_tips.pdf| newspaper=Ecb.europa.eu/paym/groups/shared/docs/d8dd9-ami-pay-_20170209_item07b_presentation_on_tips.pdf| date= | accessdate=2021-09-21}}</ref> available from November 2018
|-
| {{flag|Hong Kong}}
| [[Faster Payment System]] - available since 2018
|-
| {{flag|India}}
| [[Immediate Payment Service|IMPS]] - Immediate Payment Service, implemented in 2010 and [[Unified Payments Interface|UPI]] - Unified Payments Interface, implemented in 2016
|-
| {{flag|Japan}}
| [[ZENGIN]], implemented in 1973
|-
| {{flag|Norway}}
| [[Vipps]], since 2015.
|-
| {{flag|Philippines}}
| [[InstaPay]]
|-
| {{flag|Pakistan}}
| [[Raast]] since 2019
|-
| {{flag|Poland}}
| [[Blik]] since 2015
|-
| {{flag|Russia}}
|{{ill|Sistema bystrykh platezhey|ru|Система быстрых платежей}} - Fast Payments System,<ref name="Российская газета_2019-01-28">{{Citation | url=https://rg.ru/2019/01/28/v-rossii-zapustili-sistemu-bystryh-platezhej.html| title=В России запустили систему быстрых платежей| newspaper=Российская газета| date= 2019-01-28| accessdate=2019-01-28}}</ref> available from 2019
|-
| {{flag|Sweden}}
| [[Swish (payment)|Swish]],<ref>{{Cite web|url=https://www.getswish.se/om-swish/|title=Swish - Betala enklare|website=Swish|language=sv-SE|access-date=2018-04-02}}</ref><ref name="ne">{{cite encyclopedia | title=Swish | encyclopedia=[[Nationalencyklopedin]] }}</ref> since 2012, retail since 2014
|-
| {{flag|Switzerland}}
| [[Twint]],<ref>{{Cite web|url=https://www.twint.ch/en/|title=Simply Twint it}}</ref> since 2017
|-
| {{flag|Thailand}}
| [[PromptPay]], which is operated by [[VocaLink]]<ref>{{cite web |url=https://b2b.mastercard.com/stories/thailand-promptpay/ |title=Transforming Thailand to a digital economy }}</ref>
|-
| {{flag|United Kingdom}}
| [[Faster Payments Service|Faster Payments Service (FPS)]], available since 2008, which is operated by [[VocaLink]]
|-
| {{flag|United States}}
| [[Zelle (payment service)|Zelle]],<ref name="vulnerable_2018_04_07_nytimes_com">[https://www.nytimes.com/2018/04/22/business/zelle-banks-fraud.html "Zelle, the Banks' Answer to Venmo, Proves Vulnerable to Fraud"], April 22, 2018, ''[[The New York Times]]'', retrieved February 10, 2020</ref> available since 2016 and [[Venmo]],<ref name="Business of Apps_2020-09-02">{{Citation | url=https://www.businessofapps.com/data/venmo-statistics/| title=Venmo Revenue and Usage Statistics (2021)| newspaper=Business of Apps| date= 2020-09-02| accessdate=2020-09-02}}</ref> available since 2013 and [[The Clearing House]]'s [[Real-Time Payments|RTP]] - Real-Time Payments,<ref name="Theclearinghouse.org_2021-09-21">{{Citation | url=https://www.theclearinghouse.org/payment-systems/~/link.aspx?_id=E184253EB0CE475E8D485D9FCCBB05E4&_z=z| title=Real Time Payments| newspaper=Theclearinghouse.org| date= | accessdate=2021-09-21}}</ref> available since 2017 and [[FedNow]], launched in mid-2023<ref>{{cite web |title=Federal Reserve Board - FedNow Service |url=https://www.federalreserve.gov/paymentsystems/fednow_about.htm |website=Board of Governors of the Federal Reserve System |access-date=26 October 2022 |language=en}}</ref>
|}

==See also==
* [[European Central Bank]]
* [[EBA Clearing]]
* [[SWIFT]] for [[New Payments Platform|NPP]]

==References==
{{Reflist}}

[[Category:Securities clearing and depository institutions]]
[[Category:Payment networks]]
[[Category:Payment systems]]

Instant payment - Revision history

WikiDwarf at 13:51, 19 August 2023