Money’s new need for speed

Data viz

Over the past decade and a half, more than 50 other markets have put in place their own real-time payments systems², looking to create infrastructure that reduces the friction of digital payments, and which creates a solid platform for technology companies, from small startups to massive global businesses, to build out their own services and tools.

Despite the benefits of real-time payments, merchants haven’t always jumped to adopt it. In markets where payment cards are ubiquitous, brick-and-mortar and digital retailers don’t necessarily see an immediate need to add new payment methods. But in some markets—such as India, where the UPI real-time payments system is becoming the preferred mode for low-value transactions—merchants are highly motivated to start using real-time payments infrastructure. In those markets, where card penetration is low, real-time payments systems offer an alternative to cash³, ⁴.

Transacting at speed does create risks. Real-time payments are quick and irrevocable, making them easier for fraudsters to exploit than slower transfer systems. Authorized push payment (APP) scams— where a fraudster convinces an individual to send them an instant payment by pretending to be a legitimate business, friend, or love interest—have risen since the adoption of real-time payments. In 2022 alone, £485 million ($616 million) was stolen in the UK via APP fraud⁵. Customer awareness and consumer protection rules are catching up, but this fraud presents a huge challenge for governments, consumers, banks, and payment companies.

Still, the global real-time payment infrastructure is only going to continue growing. The U.S. Federal Reserve launched its FedNow service in July 2023, transforming the payments business in the world’s largest economy⁶. And with new data standards, such as ISO 20022, which will allow greater interoperability between financial institutions and payments networks, real-time payments are likely to increasingly cross borders. In this infographic, we explore the state of play right now...