Instant Payments: A Global View

  • ID: 4421308
  • Report
  • Region: Global
  • 63 pages
  • GlobalData
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FEATURED COMPANIES

  • Alibaba
  • Barclays
  • BPAY
  • NETS
  • Paym
  • Ripple
  • MORE
Instant Payments: A Global View

Summary

‘Instant’, ‘immediate’ or ‘real-time’ payment refers to electronic payment solutions available 24/7 that enable real-time or close-to-real-time clearing of the transaction and crediting of the payee’s account with a confirmation to the payer, irrespective of the underlying payment instrument e.g. credit transfer, direct debit or payment card.

Key findings included in this report:
  • In today’s connected world consumers have come to expect instant fund transfers in the same manner they expect instant access to information on their computers or smartphones. Instant payments facilitate the 24/7 transfer of funds, immediate peer-to-peer (P2P) mobile payments, emergency payments at any time, and innovative payment products via mobile phone.
  • Fast payment systems are live in 18 markets globally, and are planned in 24 markets - these systems are still an exception rather than the rule, but this is expected to change in the near future.
  • The benefits of instant payment systems for banks and other payment service providers vary from increased potential to deliver new services to customers, to efficiencies created through the shift from paper-based to electronic payments, to strengthening relationships with current customers and facilitating customer acquisition.
Critical success factors:
  • Consumer strategy: Banks offering services that run on the instant payment platform need to promote and educate customers on the benefits of the new payment solutions.
  • Innovation strategy: Collaborate with the fintech sector to develop new payment services for the retail and corporate segment.
  • Merchant strategy: While instant payments by default drive growth in credit transfers and P2P payments, there is great potential in developing payment solutions for purchases at the point of sale.
The report "Instant Payments: A Global View", contains an in-depth review of instant payment systems around the world, including analysis of the key systems currently in place, and their strengths and weaknesses.

In depth, this report provides the following:
  • Defines the term “instant payments” as it applies to consumer/retail payments.
  • Identifies the main features of instant payment systems and the consumer needs these serve.
  • Analyzes the instant payment systems currently in place in key markets in Europe, Asia, Africa, and the Americas.
  • Provides an in-depth analysis of the instant payment systems in place in the UK and Singapore, as well as the system being developed in Australia.
Companies mentioned in this report: BlueCash, Vocalink, Danske Bank, Swish, Paym, Barclays, OCBC, BPAY, PayPal, Apple, Alibaba, Ripple, NETS

Scope:
  • In today’s connected world consumers have come to expect instant fund transfers in the same way they expect instant access to information on their computers or smartphones.
  • Fast payment systems are live in 18 markets globally, and are planned in 24 markets - these systems are still the exception rather than the rule, but this is expected to change in the near future.
  • The benefits of instant payment systems for banks and other payment service providers vary from increased potential to deliver new services to customers, to efficiencies created through the shift from paper-based to electronic payments, to strengthening relationships with current customers and facilitating customer acquisition.
Reasons to buy:
  • Understand the context (both in terms of market-level drivers and consumer drivers) behind the development of instant payment systems.
  • Learn about the key features of instant payment systems worldwide, which players use them, and what advantages they offer to consumers.
  • Gain an in-depth understanding of the latest system in development: the New Payments Platform in Australia.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Alibaba
  • Barclays
  • BPAY
  • NETS
  • Paym
  • Ripple
  • MORE
1. EXECUTIVE SUMMARY
1.1. Definition of instant payments
1.2. Key findings
1.3. Critical success factors
2. KEY TAKE-OUTS
2.1. Why develop an immediate payment system?
2.1.1. Instant payment is the catalyst for the future of banking
2.1.2. Cost savings from immediate payments will come first, revenues later
3. REAL-TIME RETAIL PAYMENT SYSTEMS
3.1. The digital economy has led to the implementation of instant payments in most markets
3.2. Definition of key terms
3.2.1. Real-time retail payment system vs real-time gross settlement
3.2.2. Instant payments
4. THE NEED FOR INSTANT PAYMENTS
4.1. Why are instant payments being implemented?
4.1.1. Central banks are largely behind the push for instant payments
4.1.2. The rapid development of communication technologies brings new possibilities for payments
4.1.3. Instant payment systems provide an opportunity to upgrade security
4.1.4. Consumer non-cash payment volumes have risen at a rapid rate, straining older systems
5. INSTANT PAYMENTS AROUND THE WORLD
5.1. Asia Pacific
5.1.1. Japan led the world in faster payments but with a system that was limited in scope
5.1.2. Instant payment development in South Korea was influenced by its electronic industry and government
5.1.3. Economics determined the need for instant payment in China
5.1.4. India hopes to reduce dependence on cash through instant payments
5.2. South America
5.2.1. Brazil - SITRAF (2002)
5.2.2. Chile - Transferencias en Linea (2008)
5.2.3. Mexico - Sistema de pagos electronicos interbancarios (2004)
5.3. Middle East and Africa
5.3.1. South Africa - Real-Time Clearing (2006)
5.3.2. Nigeria - NIBSS Instant Payment (2011)
5.3.3. Turkey - Retail Payment System (2012)
5.4. Europe
5.4.1. Denmark wanted a platform that could make P2P payments in true real-time
5.4.2. Poland offers two instant payment platforms
6. INSTANT PAYMENT IN THE UK, SINGAPORE, AND SWEDEN
6.1. UK: Faster Payments Scheme
6.1.1. Credit transfer usage has grown by almost 30% since the inception of Faster Payments
6.2. Background
6.2.1. Cash and cheque P2P transfers are decreasing, largely due to the FPS
6.3. Singapore: Fast and Secure Transfers (FAST)
6.3.1. FAST brought true instant payments to Singapore, accelerating the shift away from cash
6.3.2. The FAST platform includes push and pull credits, increasing payment flexibility
6.3.3. Background
6.3.4. FAST: participating banks
6.3.5. FAST is driving innovation in the payments market
6.4. Sweden: Payments in Real Time (BiR)
6.4.1. Payments in Real Time is a big step towards a cashless society
6.4.2. Background
6.4.3. P2P payment was the key overlay of the BiR system
7. THE AUSTRALIAN NEW PAYMENT PLATFORM
7.1. The NPP should hit the ground running when it launches
7.1.1. The New Payment Platform is seven years in the making
7.1.2. The New Payment Platform will propel Australia closer towards being a cashless society
7.2. The NPP will bring greater competition in e-commerce
7.2.1. The NPP can work with new digital wallets such as Afterpay and ZipPay, giving rise to disintermediation in e-commerce
7.3. Rising P2P payments in Australia highlight the need for instant payment infrastructure
7.3.1. NPP participants
8. APPENDIX
8.1. Abbreviations and acronyms
8.2. Methodology
8.3. Bibliography
8.4. Further reading

List of Tables
Table 1: Participating banks of the Faster Payments Scheme
Table 2: FAST coverage encompasses all domestic and major foreign banks
Table 3: New Payment Platform members

List of Figures
Figure 1: Innovative banks are highly valued among consumers
Figure 2: Sweden’s Swish app can earn $0.17-0.23 per SME transaction
Figure 3: There are numerous instant payment services now operating worldwide
Figure 4: Electronic transfers are forecast to reach $1,222.3tn in 2017 for the 73 markets covered
Figure 5: Payment settlement platforms needs to be prepared to handle greater volumes
Figure 6: Most countries still do not have an instant payment system in place
Figure 7: Cash transactions remain the preferred transaction method in Japan
Figure 8: Electronic payment transfer in South Korea has been reducing the use of cash
Figure 9: Electronic transfers in China are still small in comparison to cash, but are rapidly gaining market share
Figure 10: Cash use in India is stalling as banking and payments are becoming more digitized
Figure 11: Instant payments drive growth in electronic payments
Figure 12: After almost a decade since implementation, FPS is still growing at a fast pace
Figure 13: The convenience of instant payment is driving P2P payments
Figure 14: Credit transfers saw a marked increase after the launch of FAST in Singapore
Figure 15: The frequency of P2P transfers has increased
Figure 16: OCBC’s Pay Anyone app was the first in the market to enable purchases without needing their bank details
Figure 17: BiR has accelerated the trend towards a cashless society in Sweden
Figure 18: P2P payments are becoming more frequent as the friction has been taken out of transfers
Figure 19: Swish has already built its user base and is now focusing on improving functionality in the P2B market
Figure 20: Osko offers fast, secure instant payments with messaging capabilities
Figure 21: Australia is shifting away from cash use already; the NPP launch will only accelerate this
Figure 22: The NPP will be an instant hit in Australia as P2P payments are mostly done by bank transfer
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  • BlueCash
  • Vocalink
  • Danske Bank
  • Swish
  • Paym
  • Barclays
  • OCBC
  • BPAY
  • PayPal
  • Apple
  • Alibaba
  • Ripple
  • NETS
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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