Instant payments: Providing the rails for new payment solutions

Niels M. Pranger
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Niels M. Pranger: Dutch Payments Association, The Netherlands

Journal of Payments Strategy & Systems, 2024, vol. 18, issue 1, 96-108

Abstract: In November 2023, European legislators reached an agreement on legislation to increase adoption of instant payments. Instant payments enable consumers and corporates to make transactions in real time and 24/7. These unique features allow for value-added services such as e-commerce and point-of-sale payment solutions that can compete with card payments. Through a discussion of a number of successful payment solutions built on instant payments, this paper explains how instant payments could help Europe in its quest to develop a homegrown payment solution. The analysis starts with a discussion of Brazil’s Pix and India’s Unified Payments Interface, providing interesting insights into the possibilities of instant payments. The paper then moves on to a description of the European Payments Initiative — the consortium of European banks that recently acquired iDEAL, the Dutch accountto- account e-commerce payment solution. The paper also shows how Swish — the Swedish payment solution — provides valuable lessons to Europe as regards the launch of a payment solution, notably with respect to the importance of realising network effects.

Keywords: instant payments; pan- European payment solution; payments soreveignty; European Payments Initiative; Pix; UPI; Swish (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
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