In a recent webinar hosted by The Soltesz Institute, Viktoria Soltesz and Marcia Klingensmith from Instant Payments Maven unpacked the key developments shaping instant payments in Europe and globally.
The discussion covered the new EU regulations for SEPA Instant Payments, which will soon require all European banks to offer instant payments 24/7. While instant payments are becoming standard worldwide, European banks face unique pressure due to mandatory deadlines set for January 2025 for receiving and October 2025 for sending instant payments.
Global examples
India and Brazil have shown the potential of instant payments to drive financial inclusion. Government-led systems like UPI and PIX have completely changed how people pay. From peer-to-peer transfers to everyday purchases at local merchants, instant payments have become routine, empowering people and businesses alike. For small businesses, the ability to accept immediate payments has been crucial, especially as many people globally live paycheck to paycheck. Instant payments give them control, helping them bridge financial gaps and manage cash flow in ways that weren’t possible before.
Instant payments isn’t just about speed
Instant payments isn’t just about speed but about ensuring customers can access their money whenever they need it. Advances in cloud computing, APIs, and artificial intelligence have been vital in making these real-time payments safe and practical. These technologies allow banks to handle transactions quickly, analyze data to prevent fraud, and offer a secure way for people to move money. As customer expectations shift, the pressure to innovate has reached a point where staying with outdated systems is simply not an option.
Card payments vs Instant payments
Instant payments differ from traditional card payments, with instant transactions eliminating chargebacks and providing immediate access to funds. This approach helps merchants with their cash flow and removes any waiting period often associated with card payments. However, instant payments also bring certain risks, as disputed transactions cannot be easily reversed. Merchants now need to be cautious with fraud prevention since instant payments don’t offer the same safeguards as cards in terms of chargebacks.
Implementation
Implementing instant payments can feel daunting for banks, especially with large banking legacy systems. But with proper planning and partnerships, it is achievable and won’t necessarily be a long, costly process. By adopting instant payments, banks could take the first steps toward modernizing their entire payments setup, opening the door to more flexibility and even the possibility of integrating additional services through APIs.
Instant payments can benefit both consumers and businesses by enabling secure, real-time access to funds, ultimately shaping the future of global banking.
To re-watch the webinar please visit https://solteszinstitute.com/courses-tsi