Are Instant Payments Becoming the New Normal? A Comparative Study

54 Pages Posted: 23 Aug 2019

See all articles by Monika Hartmann

Monika Hartmann

European Central Bank (ECB)

Lola Hernández

De Nederlandsche Bank

Mirjam Plooij

De Nederlandsche Bank

Quentin Vandeweyer

University of Chicago - Booth School of Business

Date Written: August, 2019

Abstract

As a result of technological advancements, instant delivery of digital services has become the norm in today’s society. Yet, until recently, this trend did not extend to retail payment services, which normally took one or up to a few working days from the end user's perspective. Following Europe’s recent launch of its own SEPA-wide instant payment platform, now is the time to ask the question: will instant payment services become “the new normal” and what would this new normal look like? This paper assesses the overall prospects of instant payments in the euro area. It identifies structural drivers and blockers to the adoption of instant payments based on the analysis of country cases where instant payments became operational in the last few years.

Keywords: instant payments, money demand, payment system

JEL Classification: E41, E42, E58

Suggested Citation

Hartmann, Monika and Hernández, Lola and Plooij, Mirjam and Vandeweyer, Quentin, Are Instant Payments Becoming the New Normal? A Comparative Study (August, 2019). Available at SSRN: https://ssrn.com/abstract=3441654 or http://dx.doi.org/10.2139/ssrn.3441654

Monika Hartmann (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Lola Hernández

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Mirjam Plooij

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Quentin Vandeweyer

University of Chicago - Booth School of Business ( email )

5807 S Woodlawn Ave
Chicago, IL 60637
United States

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