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The Quest for Speed in Payments

12 Pages Posted: 20 Mar 2017  

Morten L. Bech

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures

Yuuki Shimizu

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures

Paul Wong

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures

Date Written: March 6, 2017

Abstract

This feature looks at technology in payment systems. It compares the diffusion of real-time gross settlement (RTGS) systems for wholesale payments with that of faster systems for retail payments (fast payments). RTGS systems emerged in the 1980s and were adopted globally within a span of 30 years. Fast payments followed in the early 2000s, offering instant payments on a 24-hour, seven-day basis. So far, the diffusion of fast payments mirrors that of RTGS, and it is primed to take off. Yet even while adoption of fast payments is under way, the next generation of payment systems, such as those based on distributed ledger technology, is under development.

JEL Classification: E58, G20, O30

Suggested Citation

Bech, Morten L. and Shimizu, Yuuki and Wong, Paul, The Quest for Speed in Payments (March 6, 2017). BIS Quarterly Review March 2017. Available at SSRN: https://ssrn.com/abstract=2931564

Morten L. Bech (Contact Author)

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland
41612808923 (Phone)

Yuuki Shimizu

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Paul Wong

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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