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:
History 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. Similarly, merchants require faster and more reliable money transfer systems to keep up with consumers' demands.
Traditional electronic payments like bank transfers, that perform the electronic funds transfers within a few business days, are not in line with user expectations.
In 2024, EU adopted Instant Payment Regulation, aiming to accelerate instant payments in Europe. For EU member states operating in euro it partially took effect in January 2025, for non-euro member states it will partially take effect 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. 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. 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.
Notable instant payment systems by country NameCountryLaunchedPayment SourcesIdentifiersNotable FeaturesTransaction Volume per year (in billions)New Payments Platform (NPP) 2018Bank AccountPayID (Phone number, email or Australian Business Number)Recurring Payments1.2 (2022)Wero2024Bank accountMobile NumberQR CodeCross-border instant paymentInteroperable Instant Payment System (IIPS)2025Bank account, net bankingsQR code, Mobile number, IIPS ID Instant Payment SystemN/APix 2020Bank AccountQR CodeEmailMobile NumberPix Key/AliasRecurring Payments (Pix Automático)Get change as cash at merchants (Pix Troco)Cash withdrawal (Pix Saque)42 (2023)Bre-B2025Bank AccountCooperativeQR CodeID NumberMobile NumberEmailAliasInstant Payment SystemATM withdrawalRecurring PaymentsInternet Banking Payment System (IBPS) 2010Bank Accounte-walletQR CodeMobile NumberRecurring Payments16.98 (2023)Vipps and MobilePay2013 (MP)2015 (Vipps)Debit/Credit CardBank AccountMobile NumberCommon app for users of all banks Ability to chat. 1.52 (2024)TARGET Instant Payment Settlement (TIPS)2018IBAN0.23 (2023)Instant Payment Network2022Bank Account, Meeza Prepaid CardInstant Payment Address (IPA)Mobile NumberCard NumberBank Account NumberIBANQR CodeURLUnified app for inter-bank transfersSend money requests1.5 (2024)Faster Payment System (FPS) 2018e-walletBank AccountQR CodeMobile Number Email
FPS IDSupports both Hong Kong Dollar & Chinese Yuan Renminbi0.531 (2023)Azonnali Fizetési Rendszer (AFR) 2020Bank accountBank Account NumberMobile NumberEmailTax NumberUnified Payments Interface (UPI)2016Bank AccountPrepaid WalletCredit CardCredit LineCBDC Stored ValueQR CodeNFCUPI IDMobile NumberSound PatternBank Account Number with IFSCRecurring Payments (UPI AutoPay)Foreign Inward RemittancePayments without Internet/Network (UPI Lite X)Feature phone compatibilityUPI OneWorld (for tourists)ATM WithdrawalInternational PaymentsDistributed by ecosystem of apps, some of which provide value added features like chatApps allow linking multiple payment sources, from all service providers in a unified manner117.6 (2023)Immediate Payment Service (IMPS)2010Bank AccountMobile Money Identifier (MMID)Bank Account Number with IFSC.Foreign Inward Remittance (FIR)5.8 (2023)Quick Response Code Indonesia Standard(QRIS)2019e-WalletBank accountQR Code2.57 (2024)ZENGIN 1973Bank AccountAccount NumberInward Remittance3 (2023)CliQ 2020Bank AccountIBANAccount numberAlias0.03 (2023) (SPEI)() 2004Bank AccountCLABE numberInstant Payment SystemN/ARaast 2021Bank AccountIBANMobile Number0.16 (2023)InstaPay 2018Bank Accounte-walletQR CodeAccount Number and Recipient's Bank NameMobile NumberEmail ID0.74 (2023)PESONet2017Bank Accounte-walletAccount Number and Recipient's Bank NameMobile NumberEmail ID0.08 (2023)BLIK 2015Bank AccountNFCDynamic CodeATM Withdrawal & DepositRecurring Payments1.80 (2023)Faster Payment System (Russia)2019Bank AccountMobile Number668 (2024)Fast and Secure Transfers (FAST)2014Bank AccountBank Account Number with Bank Code0.29 (2022)PayNow2017Bank AccountQR CodeNRICMobile NumberInternational Remittance0.31 (2022)Bizum 2016Bank AccountMobile NumberQR CodeDirect Donations to NGOs Cross-border instant payment1 (2022)Swish 2012Bank AccountQR CodeMobile NumberTWINT 2017Bank AccountQR CodeMobile NumberDynamic Token0.59 (2023)PromptPay 2021Bank AccountQR CodeMobile Number3.6 (2023)Faster Payment Service (FPS) 2008Bank AccountAccount Number and Recipient NameQR CodeForward dated payments Standing orders4.5 (2023)Zelle 2017Bank AccountEmailMobile Number2.3 (2022)FedNow2023Bank AccountVisa Direct2025Bank Account with Visa Debit CardDebit Card number with cardholder's nameConverted to an instant payment system in April 2025, for customers in the USVisa Direct is different from Visa's card payment service, which is not an instant payment system10 (2024)EasyPay 2009Bank AccountMobile Number 0.05 (2021)Multibanco 1985Bank AccountUnique generated number (Referência Multibanco)Bank Account NumberIBANMobile Number (2015)NFC (2017)QR Code (2018)ATM withdrawalsIn-store PaymentsGovernment/Service PaymentsVirtual Credit CardsP2P transfersOnline ShoppingSEPA Instant Credit Transfer(SCT Inst, SEPA Instant Payment)2017Bank AccountInternational Bank Account NumberExtension 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)
See also Clearing (finance) European Central Bank EBA Clearing SWIFT for NPP Settlement (finance)
References