Financial technology provider FIS has released the sixth annual ‘Flavors of Fast’ report that uncovers a global rise in real-time payment systems adoption.
The annual report found an overall 35% increase in real-time payment systems in the last 12 months – almost quadrupling since the inaugural 2014 study.
FIS identified 54 countries with active real-time payment programs, up from 40 in 2018.
“Consumers and businesses globally are demanding faster payments, and more countries and financial institutions are hearing the call and taking action,” said Raja Gopalakrishnan, EVP, International Banking and Payments, FIS.
“While this is good news for the marketplace, we are only at the beginning of this revolution and much more investment is needed to make the global transition to real-time payments.”
The firm made reference to new programs launched in Asia and the expansion of Europe’s SEPA Instant Credit Transfer (SCT Inst) scheme as contributors to the rise.
This is on top of the growth in chat-based services, retail apps, instant loans and open APIs, as well as the migration toward the ISO 20022 global payments standard.
The study categorised each countries real-time payments system on a 1-5 scale, with five acting as the most efficient.
Its ‘Faster Payments Innovation Index’ based ratings on three key aspects: innovative features, fund availability and market application.
India lead the way receiving the only 5+ rating; FIS said the country witnessed a “10-fold increase in value” and an “eight-fold increase in transaction volumes” through its national immediate payment service (IMPS) over the last year.
Six countries (Australia, Denmark, Poland, Romania, Singapore and Sweden) received a 4+ rating for their real-time payments systems.
The US and UK were among 31 other countries or regions with a 4 rating for their faster payments schemes.
“Real-time payments are expanding across the globe at an unprecedented pace,” noted Ron Van Wezel, senior analyst, Aite Group.
“Financial institutions that have a strategy in place for real-time payments will be ahead of the game.”
