IMF Working Papers

Instant Payments: Regulatory Innovation and Payment Substitution Across Countries

By Tanai Khiaonarong, David Humphrey

November 18, 2022

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Tanai Khiaonarong, and David Humphrey. Instant Payments: Regulatory Innovation and Payment Substitution Across Countries, (USA: International Monetary Fund, 2022) accessed December 9, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Instant, or fast, payments are credit transfers completed and settled within seconds or minutes. They have low costs, reduce payment risk, and have significantly replaced the use of cash, cards, or check and direct debit payments. We note the role played by regulators in promoting instant payments and identify instances of significant payment instrument substitution across 12 advanced and emerging market economies. This substitution reflects the realized demand for attributes offered by instant payments. As these attributes are quite similar to those for CBDC, the demand for retail CBDC (if issued) may be less compelling.

Keywords: Instant payments, Payment substitution, Regulatory innovation

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/228

  • Stock No:

    WPIEA2022228

  • ISBN:

    9798400221897

  • ISSN:

    1018-5941