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Payments

Why Instant Payments Are the Future of Transactions

Date:February 3, 2025

In an era where digital transformation is reshaping financial services, instant payments have emerged as a game-changer. Consumers and businesses alike demand faster, more efficient, and secure transactions. With regulatory mandates like the SEPA Instant Payments Regulation accelerating adoption, instant payments are set to become the standard for transactions worldwide. But why is this shift happening, and what does it mean for businesses, banks, and payment service providers (PSPs)?

The Surge of Instant Payments

Compelling Statistics:

  • 1 in 3 transactions in Europe is expected to be instant by 2027 (European Payments Council).
  • Global real-time payments volume is projected to hit 427 billion transactions annually by 2026 (ACI Worldwide).
  • In the UK alone, Faster Payments processed over 3.8 billion transactions in 2023, up 18% from the previous year (Pay.UK).
  • The European Central Bank estimates that SEPA Instant Payments could reduce liquidity risks for businesses by over 50%.

These figures highlight a clear trend: businesses and consumers no longer accept delays in financial transactions. The rise of SEPA Instant Payments, Faster Payments, and Request-to-Pay services reflect the growing need for immediacy in financial interactions.

The Benefits Driving Adoption

1. Speed and Efficiency

Traditional bank transfers can take up to two business days to process. Instant payments, on the other hand, settle in less than 10 seconds, 24/7, 365 days a year. This enhances cash flow management for businesses and provides consumers with real-time financial control.

2. Regulatory Momentum

Regulators are pushing for instant payment adoption to drive economic efficiency and competition. The EU SEPA Instant Payments Regulation, set for mandatory implementation, requires banks to offer instant payment capabilities at the same cost as standard transfers. The upcoming October 9, 2025 deadline will make outgoing instant payments and Verification of Payee (VoP) mandatory, significantly reshaping how banks and PSPs operate.

3. Reduced Fraud and Increased Security

Real-time fraud monitoring and Verification of Payee (VoP) reduce fraud risks by ensuring that payment recipients are correctly identified before transactions are processed. This is particularly crucial as Authorized Push Payment (APP) fraud cases continue to rise.

4. Cost Savings and Competitive Advantage

For businesses, instant payments mean improved liquidity, reduced reliance on costly credit facilities, and fewer operational inefficiencies. Merchants can also avoid high card processing fees by leveraging Request to Pay (RTP) and instant settlement solutions.

5. Consumer and Business Demand

With the rise of digital wallets, open banking, and embedded finance, consumers now expect their payments to be as fast as their digital experiences. According to a survey by Deloitte, 78% of businesses plan to invest in instant payments technology within the next three years.

What This Means for Banks and PSPs

Banks and PSPs must act swiftly to integrate instant payment solutions into their infrastructure. This includes:

  • Upgrading payment systems to support real-time processing.
  • Implementing SEPA Instant Payments and Faster Payments capabilities.
  • Enhancing fraud detection and compliance measures.
  • Educating businesses and consumers about the benefits of instant transactions.

Are You Ready for Instant Payments?

The transition to instant payments isn’t just a regulatory obligation—it’s a strategic opportunity. Organisations that fail to adapt risk losing market share to fintech disruptors and agile competitors.

At Projective Group, we specialize in helping financial institutions navigate this shift with tailored strategies and expert insights. Whether you need assistance with gap analysis, compliance, or instant payment implementation, our team is here to support you.

Contact us today to ensure you’re on track for the SEPA Instant Payments deadlines and future-proof your payment infrastructure!

About Projective Group  

Established in 2006, Projective Group is a leading Financial Services change specialist. 

We are recognised within the industry as a complete solutions provider, partnering with clients in Financial Services to provide resolutions that are both holistic and pragmatic.  We have evolved to become a trusted partner for companies that want to thrive and prosper in an ever-changing Financial Services landscape.