Even though we live in the age of instant communications, making an electronic payment might take up to one business day. If we make an electronic payment on a weekend or holiday, it may not even start on its way to the beneficiary until the next working day.
Because of quick payments, money is available on the recipient’s account in seconds, 24 hours a day, 365 days a year. In a handful of nations, this is already achievable. However, it should be legal in every European country, not just for payments to individuals or businesses in your own country, but also for payments to individuals or businesses in other European countries.
More transactions will be done digitally rather than with cash as a result of rapid payments, making payments less expensive and more user pleasant. It is critical that, as an industry, we move to immediate payments while preserving the high security, low risk, and low fraud that we have today, and continue to gain the trust of our customers. It’s also critical that the instant payments system be able to scale up, as we’ve seen a huge growth in communities that currently use a real-time system, as well as expand in scope, to enjoy the cost benefits of an up-to-date and cutting-edge system.
With instant payments, you can send and receive electronic payments in euro anytime and anywhere. In some countries, you can already send instant payments via mobile phone, giving you the same experience in terms of speed and convenience as with cash, for example when sharing a dinner bill with colleagues or lending some money to a friend or relative.
Instant payments in e-commerce remove the danger of online businesses not being paid since the delivery of products and services may be conveniently coordinated with the payment. Instant payments for business-to-business payments enhance cash flow, make it easier to manage finances, eliminate late payments, and speed up invoice payment.
Merchants may take rapid payments remotely and access monies in their transaction account instantaneously, just like they would with cash. This is especially beneficial to micro-and small-business owners, who can then pay suppliers on time and meet other pressing financial responsibilities. Governments can also immediately transfer emergency funding to people and companies. Remittances, which account for a sizable amount of the GDP of many poor nations, can reach family members in need quickly and at a minimal cost. For example, Western Union, a worldwide money-transfer company, has connected with India’s UPI system to allow monies from senders in other countries to be moved instantaneously to Indian bank accounts using the UPI identity of the recipients.
Users can, among other things, issue payment requests and initiate payments using identifiers such as phone numbers. End users might also be provided with data and analytical tools to help them understand their payment patterns. This is due to the systems’ ability to provide overlay services via application programming interfaces (APIs).