How Networks and Regulatory Shifts Drive Real-Time Payments Global Growth

Real-time payments are changing the global financial landscape, creating a new standard for transaction speed, efficiency and convenience.

A recent PYMNTS Intelligence report, “Real-Time Payments Map,” in collaboration with The Clearing House, provides an overview of the current status, key players and future trends in this evolving space. This report highlights how various regions and financial institutions are adapting to and integrating real-time payment systems into their infrastructure.

Key Developments and Regional Highlights:

Europe: The European Union set deadlines for payment service providers (PSPs) to adopt instant payments (Jan. 9 for receiving and Oct. 9 for sending), under the Instant Payments Regulation (IPR). Compliance requires integration with the Single Euro Payments Area (SEPA) Instant Credit Transfer scheme, fraud detection, adherence to anti-money laundering (AML) regulations, and transparent fee structures. Cyprus is leading the way, with all interbank and cross-border transfers set to be processed within 10 seconds, 24/7, in line with EU deadlines.

Middle East: Kuwait’s Weyay Bank has launched AFAQ, a regional payment system connecting the payment systems of Gulf Cooperation Council (GCC) nations, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. AFAQ facilitates instant and cost-effective financial transfers in local currencies, ensuring privacy and information security.

Africa: Several African nations have implemented real-time payment systems, including Egypt.

North America: While the U.S. and Mexico have live real-time payment systems, Canada is expected to implement one by 2026.

Other Regions: While real-time payment systems are live in many countries in South America and Asia-Pacific, several countries in Latin America have already implemented real-time payment systems, including: Argentina (2016), Belize (2016), Brazil (2002), Chile (2008), Colombia (2019), Costa Rica (1996), the Dominican Republic (2006), El Salvador (2021), Guatemala (2006), Honduras (2008), Nicaragua (2016), Peru (2016), and Uruguay (2021). These nations have contributed to the expansion of real-time payment capabilities across the region.

Egypt’s Push for Digital Transformation:

The Central Bank of Egypt (CBE) has introduced a new service for instant international money transfers to Egypt, available around the clock. This initiative aligns with Egypt’s Vision 2030, which focuses on transitioning to a cashless society and a digital economy. The service simplifies remittance processes for Egyptian citizens and residents and is initially available through a select group of international agents and correspondents, with plans for future expansion.

Challenges and Opportunities:

Although implementing real-time payment systems comes with challenges, the benefits are considerable. Consumers enjoy instant access to funds, businesses benefit from improved cash flow management, and PSPs have the chance to strengthen their competitive positions.

Looking Ahead:

The global real-time payments landscape is continuously changing. As more countries adopt and improve their real-time payment infrastructure, the potential for seamless, efficient, and cost-effective international transactions will continue to grow. Financial institutions must stay informed and adapt to these changes to remain competitive and meet the evolving needs of their customers.