Instant Payments: Regulatory Innovation and Payment Substitution Across Countries
November 18, 2022
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: 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.
Subject: Financial markets, Payment systems
Keywords: direct debit payment, Europe, instant payment, Instant payments, payment risk, payment share, payment substitution, Payment systems, regulatory innovation
Pages:
27
Volume:
2022
DOI:
Issue:
228
Series:
Working Paper No. 2022/228
Stock No:
WPIEA2022228
ISBN:
9798400221897
ISSN:
1018-5941
