Instant Payments: A Revolution in Search of Vision

The global financial landscape is witnessing a radical transformation that is hard to ignore, characterized by the rapid spread of instant payment systems. These systems, which allow for the instantaneous transfer of funds between accounts around the clock, are no longer just an advanced technology; they have become a reality that imposes itself. But the question arises: Can banks effectively leverage this revolution?
From "FedNow" in the United States to "TIPS" in Europe and "UPI" in India and "Pix" in Brazil, instant payment systems have become a reality in most major economies. These systems represent a new infrastructure for finance, akin to railway networks during the Industrial Revolution.
However, the paradox lies in the fact that having the infrastructure does not guarantee full utilization. Figures indicate that over 80% of global financial institutions are still in a "receive only" mode for instant payments. What is even more striking is that a tiny percentage of banks expect to achieve direct profits from this service.
The real challenge seems to lie not in building instant payment systems but in transforming them into sustainable economic opportunities. Only 11% of banks believe they will be able to generate profits from instant payments between businesses, while only 6% expect to generate revenues from payments to individuals.
This gap between technical potential and commercial reality indicates a pressing need to reimagine financial products and services. Speed in transfer alone is not sufficient; what is required is the integration of this speed into solutions that address real customer needs.
The real opportunity for financial institutions lies in transforming instant payments from merely a fast transfer channel into integrated solutions that ensure seamless workflow for customers. Small and medium-sized enterprises, for example, are not just looking for faster transfers but for solutions to chronic issues such as delayed payments and difficulties in manual settlements.
Successful examples emerge, such as the use of QR Codes that integrate payment and settlement data into a single code, allowing for faster collections and reducing errors. In Brazil, the adoption of the "Pix" system has significantly accelerated the collection cycle.
These systems have transformed multiple areas, from payroll to treasury management. In sectors like freelancing and healthcare, workers are demanding instant wages. Companies around the world have begun to integrate these services to enhance employee satisfaction and reduce turnover rates.
In the realm of business payments, there are still significant untapped opportunities, as about 40% of these payments are still made via checks. This opens the door for banks to offer instant payment services equipped with advanced tools like invoice matching and automatic approvals.
Instant payment is no longer a future technology; it has become part of the present. However, the true benefit from it requires financial institutions to transition from a basic service provider role to that of a financial partner offering integrated solutions.
Opportunities are available for banks and financial institutions that can reimagine financial services in the age of instant payments. Success will not belong to those who provide the fastest transfer, but to those who integrate this speed into solutions that touch on real customer needs and create added value that justifies the cost.
The new railway for payments has been completed, and now comes the role of the trains that will run on it, which are the innovative services and products that will determine the winners and losers in this changing financial landscape.