Instant payment
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).
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
[edit]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]
In 2024, EU adopted Instant Payment Regulation, aiming to accelerate instant payments in Europe. For EU member states operating in euro it partially took affect in January 2025, for non-euro member states it will partially take affect in January 2027. This regulation includes requirements to send and receive transfers within 10 seconds (SEPA Instant Credit Transfer), as well as to implement the Verification of Payee service.[7][8] The Verification of Payee allows payment service providers (PSPs) to verify the IBAN and the name of the payee as given by the payer. It will help to reduce scams and incorrect transfers.[9][10] The regulation also allowed non-bank financial institutions access central bank-operated payment systems like TARGET. This opened an access to several SEPA services for fintechs and neobanks in Europe.[11]
Notable instant payment systems by country
[edit]| Name | Country | Launched | Payment Sources | Identifiers | Notable Features | Transaction Volume per year (in billions) |
|---|---|---|---|---|---|---|
| New Payments Platform (NPP) |  Australia
|
2018 | Bank Account | PayID (Phone number, email or Australian Business Number) | Recurring Payments | 1.2 (2022)[12] |
| Wero |  Belgium |
2024[13] | Bank account[14] | Mobile Number[15] QR Code[16] |
Cross-border instant payment[17] | |
| Interoperable Instant Payment System (IIPS) |  Bangladesh
|
2025 | Bank account, net bankings | QR code,
Mobile number, IIPS ID |
Instant Payment System | N/A |
| Pix |  Brazil
|
2020[18] | Bank Account[19] | QR Code
Mobile Number Pix Key/Alias[20] |
Recurring Payments (Pix Automático)[21]
Get change as cash at merchants (Pix Troco)[22] Cash withdrawal (Pix Saque)[23] |
42 (2023)[24] |
| Bre-B |  Colombia
|
2025[25] | Bank Account | QR Code
ID Number Mobile Number Email Alias[27] |
Instant Payment System
ATM withdrawal[28] Recurring Payments |
- |
| Internet Banking Payment System (IBPS) |  China
|
2010 | Bank Account
e-wallet[29] |
QR Code
Mobile Number[29] |
Recurring Payments[29] | 16.98 (2023)[30] |
| Vipps and MobilePay | 2013 (MP)
2015 (Vipps) |
Debit/Credit Card
Bank Account |
Mobile Number[31] | Common app for users of all banks
Ability to chat.[31] |
1.52 (2024)[32] | |
| TARGET Instant Payment Settlement (TIPS) |  EU
|
2018[33] | IBAN | 0.23 (2023)[34] | ||
| Instant Payment Network |  Egypt
|
2022[35] | Bank Account, Meeza Prepaid Card | Instant Payment Address (IPA)
Mobile Number Card Number Bank Account Number IBAN QR Code URL |
Unified app for inter-bank transfers
Send money requests |
1.5 (2024)[36] |
| Faster Payment System (FPS) |  Hong Kong
|
2018 | e-wallet, Bank Account[37] | QR Code
Mobile Number[37] |
Supports both Hong Kong Dollar & Chinese Yuan Renminbi | 0.531 (2023)[38] |
| Azonnali Fizetési Rendszer (AFR) |  Hungary
|
2020 | Bank account[39] | 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[40] |
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) Feature phone compatibility[43] UPI OneWorld (for tourists) ATM Withdrawal International Payments[44] Distributed by ecosystem of apps, some of which provide value added features like chat Apps allow linking multiple payment sources, from all service providers in a unified manner |
117.6 (2023)[45][46] |
| Immediate Payment Service (IMPS) | India
|
2010[47] | Bank Account[47] | Mobile Money Identifier (MMID)[47]
Bank Account Number with IFSC.[47] |
Foreign Inward Remittance (FIR)[48] | 5.8 (2023)[49] |
| Quick Response Code Indonesia Standard (QRIS) |
 Indonesia
|
2019 | e-Wallet Bank account[50] |
QR Code | 2.57 (2024)[51] | |
| ZENGIN |  Japan
|
1973 | Bank Account[52] | Account Number[52] | Inward Remittance[53] | 3 (2023)[53] |
| CliQ |  Jordan
|
2020 | Bank Account[54] | IBAN
Account number Alias |
0.03 (2023)[55] | |
| Sistema de Pagos Electrónicos Interbancarios (SPEI)
(lit. 'Interbanking Electronic Payment System') |
 Mexico
|
2004 | Bank Account[56] | CLABE number | Instant Payment System | N/A |
| Raast |  Pakistan
|
2021 | Bank Account | IBAN
Mobile Number[57] |
0.16 (2023) | |
| InstaPay |  Philippines
|
2018 | Bank Account
e-wallet[58] |
QR Code
Account Number and Recipient's Bank Name Mobile Number Email ID[58] |
0.74 (2023)[59] | |
| PESONet | Philippines
|
2017 | Bank Account
e-wallet[60] |
Account Number and Recipient's Bank Name
Mobile Number Email ID[61] |
0.08 (2023)[59] | |
| BLIK |  Poland
|
2015 | Bank Account | NFC
Dynamic Code[62] |
ATM Withdrawal & Deposit
Recurring Payments |
1.80 (2023)[63] |
| Faster Payment System (Russia) |  Russia
|
2019 | Bank Account | Mobile Number | 668 (2024) | |
| Fast and Secure Transfers (FAST) |  Singapore
|
2014 | Bank Account | Bank Account Number with Bank Code[64] | 0.29 (2022)[65] | |
| PayNow | Singapore
|
2017 | Bank Account | QR Code
NRIC Mobile Number[66] |
International Remittance | 0.31 (2022)[67] |
| Bizum |  Spain Andorra
|
2016[68] | Bank Account[69] | Mobile Number[69]
QR Code[69] |
Direct Donations to NGOs[68]
Cross-border instant payment[70] |
1 (2022)[71] |
| Swish |  Sweden
|
2012[72] | Bank Account | QR Code
Mobile Number[73] |
- | |
| TWINT |  Switzerland
|
2017[74] | Bank Account | QR Code
Mobile Number Dynamic Token[74] |
0.59 (2023)[75] | |
| PromptPay |  Thailand
|
2021 | Bank Account | QR Code
Mobile Number |
3.6 (2023)[76] | |
| Faster Payment Service (FPS) |  United Kingdom
|
2008 | Bank Account | Account Number and Recipient Name
QR Code |
Forward dated payments
Standing orders |
4.5 (2023)[77] |
| Zelle |  United States
|
2017 | Bank Account | Email
Mobile Number |
2.3 (2022) | |
| FedNow | United States
|
2023 | Bank Account | |||
| Visa Direct | United States
|
2025 | Bank Account with Visa Debit Card | Debit Card number with cardholder's name | Converted to an instant payment system in April 2025, for customers in the US[3]
Visa Direct is different from Visa's card payment service, which is not an instant payment system[5] |
10 (2024)[78] |
| EasyPay |  Ukraine
|
2009 | Bank Account | Mobile Number | 0.05 (2021)[79] | |
| Multibanco |  Portugal
|
1985 | Bank Account | Unique generated number (Referência Multibanco)
Bank Account Number IBAN Mobile Number (2015) NFC (2017) QR Code (2018) |
ATM withdrawals
In-store Payments Government/Service Payments Virtual Credit Cards P2P transfers Online Shopping | |
| SEPA Instant Credit Transfer
(SCT Inst, SEPA Instant Payment) |
EU
|
2017 | Bank Account | International Bank Account Number | Extension of the regular SEPA transfer mechanism; must be offered by all banks in the SEPA area (since October 2025). Supports QR codes for initiating transfers. | 2060 (2024)[80][81] |
See also
[edit]References
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