Building and Maintaining Momentum
Real-time payments gained early traction because they solved problems for multiple stakeholders. For banks, they offered a new way to retain relevance in an age of fintech disruption. For consumers, they provided speed and control. For businesses, they promised lower transaction costs and instant fund availability. This alignment of interests helped RTPs grow quickly in markets where these benefits were most pronounced.
However, success in the initial phase is only part of the journey. To remain competitive, RTPs must constantly evolve. That means adding features and services that make them more useful, versatile, and appealing relative to other payment methods.
The Concept of the Payment Method Bundle
To understand how payment methods compete, it’s helpful to think of each one as a bundle of capabilities. While most payment systems begin with a single differentiating feature—such as speed, credit, or ease of use—they need to build a broader offering to sustain and grow their user base. The more complete the bundle, the more likely users are to adopt and stick with that payment method.
Consider credit cards. They are accepted for nearly every type of transaction: online and in-person, one-time and recurring, low-value and high-value. On top of that, they include fraud protection, rewards programs, purchase insurance, and integration with a wide variety of loyalty and travel programs. This extensive bundle of features has made them a default option for millions.
By contrast, RTPs started with a narrower focus: fast peer-to-peer transactions, low costs, and bank account integration. These characteristics gave them a foothold, but not enough to dominate. The path forward involves adding to their feature bundle—improving usability in stores, supporting credit, and enabling seamless recurring payments.
Closing the Gap in In-Person Payments
While online payments have grown rapidly, in-person transactions still account for over 80% of all payments globally. For a payment method to become a primary choice, it must work seamlessly in physical settings as well as digital ones.
At present, RTPs are mostly used through QR code scanning. In markets where cards are less entrenched, such as many Asian countries, consumers have readily adopted this flow. QR code usage is familiar, fast, and integrates easily with mobile apps. As a result, RTPs in those regions are frequently used in-store.
However, in regions where cards and contactless payments dominate, such as parts of Europe and North America, consumers often find QR codes less intuitive. Tapping a card or a phone is quicker than scanning a code and approving a transaction within an app. The friction of QR codes becomes a barrier to adoption.
From a merchant perspective, QR codes initially offered a low-cost way to accept payments. Unlike traditional card systems, which require point-of-sale hardware, RTPs can be accepted with nothing more than a printed code. This lowered the barrier for small businesses and contributed to RTP adoption.
However, innovations in card acceptance have caught up. With Tap to Pay functionality, businesses now need only a smartphone to accept cards. The cost advantage of RTPs has eroded, and cards have reclaimed convenience as their key strength in physical retail environments.
Still, the technical landscape is changing. With mobile device manufacturers opening up NFC chip access to third-party developers, the potential exists for real-time payment apps to support contactless transactions. If that evolution occurs, RTPs could match cards in convenience while maintaining their cost and speed advantages.
Extending RTPs into Credit Services
Credit has long been a major differentiator for card networks. The ability to borrow funds instantly at the point of sale increases consumer purchasing power and helps businesses improve conversion rates. For decades, this feature has been difficult to replicate.
Offering credit is not just a technical feature—it’s a financial service requiring regulatory approval, risk management expertise, and substantial capital. Most emerging payment methods steer clear of offering credit for this reason. But bank-led RTPs are in a unique position to change that.
Banks already manage large lending operations and possess deep customer data. They can assess creditworthiness using real-time behavioral and transaction data, and they have the balance sheets needed to support installment plans and short-term loans.
Some RTP networks have already started integrating credit options. In Poland, BLIK Pay Later allows users to defer payments or split them into installments. In Brazil, Pix parcelado enables similar functionality, sometimes with interest and sometimes interest-free, depending on the institution involved. These features help RTPs compete not just for quick purchases, but for larger, more considered transactions like furniture, appliances, and travel.
This represents a major shift. For RTPs to gain ground on credit cards, they must become an attractive option for purchases that people don’t want—or aren’t able—to pay for all at once. By embedding credit within the RTP experience, bank-led systems have a chance to close that gap.
Making Recurring and Stored Payments Work
Security has always been a strong point for RTPs. Requiring users to authenticate each transaction manually through an app offers high protection against fraud. But this same feature also limits usability.
Consumers don’t want to authorize every bill payment or subscription manually. Nor do they want to re-enter payment information for each purchase. The ability to store payment details, enable one-click checkout, and automate recurring charges has become a baseline expectation in modern commerce.
In their early phases, RTPs did not support these flows. That made them great for one-off payments but unsuitable for recurring use cases like utilities, subscriptions, or installment plans. Businesses, too, were wary of friction in the checkout process.
In response, RTP systems in several countries have expanded their capabilities. Nigeria’s NIP now supports recurring payments. Switzerland’s TWINT has introduced functionality for automatic billing. Poland’s BLIK has rolled out a one-click checkout to improve user convenience.
These enhancements bring RTPs closer to parity with cards and wallets. The ability to store payment preferences, automate payments, and integrate with online shopping experiences makes RTPs more attractive to both consumers and merchants.
From Specialized Tool to Universal Platform
The evolution of RTPs is not just about adding features; it’s about redefining their role in the payments ecosystem. Early on, they were seen as a faster alternative for specific transaction types—particularly peer-to-peer payments or low-value purchases. Now, they are gradually positioning themselves as full-fledged payment platforms capable of handling a broad range of use cases.
In doing so, RTPs are competing directly with not only traditional cards but also digital wallets, installment providers, and mobile banking apps. Their success depends on whether they can offer a similarly rich experience, both in terms of convenience and functionality.
This transformation is still underway. Contactless in-person payments, access to installment-based credit, support for recurring charges, and streamlined online checkout are all major steps forward. They move RTPs from a niche solution to a mainstream option.
However, despite this momentum, one key limitation remains: most RTPs are domestic systems. They were designed to operate within a single country, often tied to the infrastructure and regulation of the national banking sector. That makes them powerful locally—but limited globally.
Evolution of Payment Choices
A decade ago, payment options were simple: cash, cards, or checks. But in today’s digital economy, consumers have more ways than ever to pay. Digital wallets like Apple Pay and Google Pay, buy now pay later services such as Klarna, Affirm, and Afterpay, cryptocurrencies like Bitcoin and stablecoins, and alternative methods such as mobile-based payment apps all compete for user attention. In this rapidly changing environment, real-time payment systems have carved out a significant role—but standing out now requires more than just speed.
Real-time payments are no longer a novel innovation; they are increasingly expected. Their emergence coincided with a broader wave of innovation in payments. The result is a competitive and saturated market, where consumers and businesses alike must navigate an ever-expanding menu of payment choices.
Building and Maintaining Momentum
Real-time payments gained early traction because they solved problems for multiple stakeholders. For banks, they offered a new way to retain relevance in an age of fintech disruption. For consumers, they provided speed and control. For businesses, they promised lower transaction costs and instant fund availability. This alignment of interests helped RTPs grow quickly in markets where these benefits were most pronounced.
However, success in the initial phase is only part of the journey. To remain competitive, RTPs must constantly evolve. That means adding features and services that make them more useful, versatile, and appealing relative to other payment methods.
Concept of the Payment Method Bundle
To understand how payment methods compete, it’s helpful to think of each one as a bundle of capabilities. While most payment systems begin with a single differentiating feature—such as speed, credit, or ease of use—they need to build a broader offering to sustain and grow their user base. The more complete the bundle, the more likely users are to adopt and stick with that payment method.
Consider credit cards. They are accepted for nearly every type of transaction: online and in-person, one-time and recurring, low-value and high-value. On top of that, they include fraud protection, rewards programs, purchase insurance, and integration with a wide variety of loyalty and travel programs. This extensive bundle of features has made them a default option for millions.
By contrast, RTPs started with a narrower focus: fast peer-to-peer transactions, low costs, and bank account integration. These characteristics gave them a foothold, but not enough to dominate. The path forward involves adding to their feature bundle—improving usability in stores, supporting credit, and enabling seamless recurring payments.
Closing the Gap in In-Person Payments
While online payments have grown rapidly, in-person transactions still account for over 80% of all payments globally. For a payment method to become a primary choice, it must work seamlessly in physical settings as well as digital ones.
At present, RTPs are mostly used through QR code scanning. In markets where cards are less entrenched, such as many Asian countries, consumers have readily adopted this flow. QR code usage is familiar, fast, and integrates easily with mobile apps. As a result, RTPs in those regions are frequently used in-store.
However, in regions where cards and contactless payments dominate, such as parts of Europe and North America, consumers often find QR codes less intuitive. Tapping a card or a phone is quicker than scanning a code and approving a transaction within an app. The friction of QR codes becomes a barrier to adoption.
From a merchant perspective, QR codes initially offered a low-cost way to accept payments. Unlike traditional card systems, which require point-of-sale hardware, RTPs can be accepted with nothing more than a printed code. This lowered the barrier for small businesses and contributed to RTP adoption.
However, innovations in card acceptance have caught up. With Tap to Pay functionality, businesses now need only a smartphone to accept cards. The cost advantage of RTPs has eroded, and cards have reclaimed convenience as their key strength in physical retail environments.
Still, the technical landscape is changing. With mobile device manufacturers opening up NFC chip access to third-party developers, the potential exists for real-time payment apps to support contactless transactions. If that evolution occurs, RTPs could match cards in convenience while maintaining their cost and speed advantages.
Extending RTPs into Credit Services
Credit has long been a major differentiator for card networks. The ability to borrow funds instantly at the point of sale increases consumer purchasing power and helps businesses improve conversion rates. For decades, this feature has been difficult to replicate.
Offering credit is not just a technical feature—it’s a financial service requiring regulatory approval, risk management expertise, and substantial capital. Most emerging payment methods steer clear of offering credit for this reason. But bank-led RTPs are in a unique position to change that.
Banks already manage large lending operations and possess deep customer data. They can assess creditworthiness using real-time behavioral and transaction data, and they have the balance sheets needed to support installment plans and short-term loans.
Some RTP networks have already started integrating credit options. In Poland, BLIK Pay Later allows users to defer payments or split them into installments. In Brazil, Pix parcelado enables similar functionality, sometimes with interest and sometimes interest-free, depending on the institution involved. These features help RTPs compete not just for quick purchases, but for larger, more considered transactions like furniture, appliances, and travel.
This represents a major shift. For RTPs to gain ground on credit cards, they must become an attractive option for purchases that people don’t want—or aren’t able—to pay for all at once. By embedding credit within the RTP experience, bank-led systems have a chance to close that gap.
Making Recurring and Stored Payments Work
Security has always been a strong point for RTPs. Requiring users to authenticate each transaction manually through an app offers high protection against fraud. But this same feature also limits usability.
Consumers don’t want to authorize every bill payment or subscription manually. Nor do they want to re-enter payment information for each purchase. The ability to store payment details, enable one-click checkout, and automate recurring charges has become a baseline expectation in modern commerce.
In their early phases, RTPs did not support these flows. That made them great for one-off payments but unsuitable for recurring use cases like utilities, subscriptions, or installment plans. Businesses, too, were wary of friction in the checkout process.
In response, RTP systems in several countries have expanded their capabilities. Nigeria’s NIP now supports recurring payments. Switzerland’s TWINT has introduced functionality for automatic billing. Poland’s BLIK has rolled out a one-click checkout to improve user convenience.
These enhancements bring RTPs closer to parity with cards and wallets. The ability to store payment preferences, automate payments, and integrate with online shopping experiences makes RTPs more attractive to both consumers and merchants.
From Specialized Tool to Universal Platform
The evolution of RTPs is not just about adding features; it’s about redefining their role in the payments ecosystem. Early on, they were seen as a faster alternative for specific transaction types—particularly peer-to-peer payments or low-value purchases. Now, they are gradually positioning themselves as full-fledged payment platforms capable of handling a broad range of use cases.
In doing so, RTPs are competing directly with not only traditional cards but also digital wallets, installment providers, and mobile banking apps. Their success depends on whether they can offer a similarly rich experience, both in terms of convenience and functionality.
This transformation is still underway. Contactless in-person payments, access to installment-based credit, support for recurring charges, and streamlined online checkout are all major steps forward. They move RTPs from a niche solution to a mainstream option.
However, despite this momentum, one key limitation remains: most RTPs are domestic systems. They were designed to operate within a single country, often tied to the infrastructure and regulation of the national banking sector. That makes them powerful locally—but limited globally.
Evolving Nature of Real-Time Payments
We examined the core drivers of RTP adoption and the strategies being implemented to expand their functionality. Now, we turn our focus to one of the biggest open questions facing real-time payments: can they become truly global? Most RTP systems today remain confined within national boundaries, limiting their use to domestic transactions and consumers. However, as commerce becomes increasingly international, so does the need for payment methods that operate across borders with the same efficiency and reliability.
Real-time payment systems have already reshaped domestic commerce in several countries, but achieving cross-border interoperability poses a more complex challenge. To succeed globally, RTPs must overcome barriers related to regulation, infrastructure, currency exchange, and trust. We explored the potential for RTPs to achieve global scale and examined the path forward for wider international adoption.
National Foundations, Global Aspirations
Real-time payment systems are inherently local creations. They are typically developed by national banks or financial authorities to modernize domestic payment infrastructures. Examples include India’s UPI, Brazil’s Pix, the UK’s Faster Payments, and Nigeria’s NIP. Each operates within a distinct regulatory and technical environment, tailored to the needs of its specific economy and user base.
While this approach makes sense for domestic purposes, it creates a fragmented global landscape. RTP systems don’t naturally interconnect across borders. Unlike international card networks, which have established global standards and partnerships, RTP systems remain siloed. Users can send funds instantly within a country but face friction when trying to move money across borders.
For RTPs to reach a global scale, they need more than just widespread domestic adoption. They require technical interoperability, standardized messaging protocols, and regulatory cooperation between countries. The emergence of global digital commerce and remote work models only increases the urgency to build bridges between national RTP systems.
Existing Cross-Border Payment Challenges
Cross-border payments remain expensive, slow, and opaque. Despite the digital revolution, sending money internationally still involves multiple intermediaries, complex compliance checks, and inconsistent settlement times. The costs and delays are particularly acute for small businesses and individuals making low-value transfers.
According to the World Bank, the average cost of sending remittances globally is still over 6% of the transaction value. Delays are common, and recipients often lack transparency about when they will receive funds or how much they will ultimately receive after fees and exchange rate adjustments.
These challenges are not merely technological. They also involve regulatory hurdles, such as anti-money laundering (AML) compliance, know-your-customer (KYC) requirements, and differing data protection standards. As a result, even in regions with advanced domestic RTP systems, international transactions are often routed through legacy correspondent banking networks that add complexity and cost.
Regional Integration: Early Steps Toward Interoperability
Some regions are beginning to experiment with integrating their RTP systems. In Southeast Asia, for example, several countries have launched efforts to connect their domestic systems through QR code-based cross-border payments. Singapore and Thailand were among the first to implement such a scheme, enabling their citizens to use local mobile payment apps in either country.
In the Eurozone, the Single Euro Payments Area (SEPA) provides a framework for instant payments in euros across member states. While SEPA isn’t an RTP system in itself, it supports the foundation for near-real-time payments across Europe. However, its reach is limited to euro transactions and does not address cross-currency payments within or beyond the EU.
Another promising initiative is the Bank for International Settlements’ Project Nexus. This effort aims to link national RTP systems through a standardized set of protocols and APIs. Rather than creating a new global network from scratch, it would allow existing national systems to interoperate more efficiently.
These regional experiments demonstrate that technical interoperability is possible, but they also highlight the complexity involved. Each success story requires careful coordination between central banks, payment system operators, and commercial banks.
Role of International Standards and APIs
One of the major technical enablers for global RTP interoperability is the adoption of standardized communication protocols. The ISO 20022 messaging standard is a critical development in this space. Designed for electronic data interchange between financial institutions, it enables richer, more consistent data exchange.
As more RTP systems adopt ISO 20022, they are better positioned to connect with each other and with other parts of the financial ecosystem. However, standardization alone is not enough. System architectures, operational timelines, settlement processes, and even consumer interfaces vary significantly from one RTP system to another.
Open APIs also play a critical role. By allowing external developers to integrate with payment systems, APIs can create pathways for fintechs, banks, and other players to facilitate cross-border payments. Initiatives that promote API harmonization across jurisdictions could simplify integration efforts and lower the barrier for global transactions.
Still, this requires international cooperation. Without aligned incentives, countries may be reluctant to open their domestic systems to foreign participants or adopt protocols developed elsewhere.
Currency Conversion and Settlement Complexities
Real-time domestic payments are denominated in the local currency. In contrast, cross-border transactions involve currency conversion, introducing another layer of complexity. Exchange rates fluctuate constantly, and users often have limited visibility into how much they will receive after conversion.
For RTPs to function globally, they must include mechanisms for transparent, real-time FX conversion. This could involve partnerships with currency exchange providers or the creation of centralized FX clearinghouses. Transparency and competition in exchange rates are key to keeping fees low and building user trust.
Settlement is another challenge. In many cross-border payments, settlement is not instantaneous. Banks may take hours or even days to clear the funds. Achieving true real-time cross-border payments would require harmonizing settlement systems across countries—a tall order given the diversity of monetary and regulatory regimes.
Addressing Compliance and Risk
A significant barrier to global RTP interoperability is compliance. AML and KYC regulations vary across countries and require thorough checks on each transaction. While these regulations are essential for preventing financial crimes, they create friction in payment systems.
Real-time payments, by their nature, allow little time for manual review. To manage compliance in a global RTP context, advanced automation, machine learning, and cross-border data sharing agreements are needed. Building systems that can assess transaction risk instantly while maintaining privacy and regulatory compliance will be a cornerstone of successful global RTPs.
Privacy regulations, particularly those related to data storage and cross-border data flows, must also be considered. Nations with strict data localization laws may restrict how RTP providers operate internationally.
Domestic Adoption as a Prerequisite
For RTPs to scale globally, they must first achieve deep penetration within their own markets. If consumers and businesses are not using RTPs domestically, there is little incentive to enable international functionality.
Some markets have shown rapid uptake. Brazil’s Pix has over 150 million registered users. India’s UPI processes over 10 billion transactions per month. These high levels of domestic usage create momentum for building cross-border extensions.
Other countries, such as the United States and the United Kingdom, have seen slower adoption of their RTP systems. In these markets, legacy payment behaviors and entrenched card usage present headwinds. Without strong domestic networks, efforts to connect internationally may not yield significant benefits.
Role of Central Banks and Global Institutions
Central banks play a critical role in shaping the future of RTPs. They are often the architects of national systems and have the authority to negotiate cross-border arrangements. Global institutions like the BIS, the International Monetary Fund (IMF), and the World Bank can help align regulatory frameworks, promote standardization, and fund interoperability initiatives.
Public-private collaboration will be essential. Governments, financial institutions, fintechs, and technology providers must work together to design systems that are secure, scalable, and user-friendly. Public trust is paramount, and central banks can help maintain that trust by setting and enforcing high standards.
Use Cases Driving Global Demand
The demand for real-time cross-border payments is growing. Key use cases include:
- Remittances: Migrant workers sending money home need fast, low-cost options. RTPs can provide a better experience than traditional remittance services.
- E-commerce: Cross-border e-commerce continues to grow. Merchants want payment methods that settle quickly and reduce chargeback risk.
- Freelance Work: Global gig workers need instant access to their earnings. RTPs can eliminate the lag and fees associated with international bank transfers.
- Corporate Treasury: Multinational companies are looking for faster ways to move money across their global operations. RTPs can streamline payroll, vendor payments, and liquidity management.
Meeting the needs of these segments can create a compelling case for building interoperable RTP networks.
Future Outlook and Industry Innovation
Innovation in this space is likely to accelerate. Startups and financial institutions are already experimenting with ways to bridge domestic RTP systems using distributed ledgers, tokenized fiat currencies, and blockchain-based settlement layers. While not all of these technologies will be widely adopted, they demonstrate the level of interest and investment in solving the cross-border RTP challenge.
The next few years will be pivotal. The groundwork laid today in terms of standardization, partnerships, and regulatory cooperation will determine whether RTPs can expand beyond national borders and become a foundational element of global finance.
Conclusion
Real-time payments have come a long way from their origins as a faster way to move money between individuals and businesses. Across this series, we’ve explored their foundational success factors, their strategies for differentiation in an increasingly crowded payment landscape, and their prospects for global expansion. Together, these trends reflect a broader shift in how consumers, businesses, and financial institutions approach money movement in a digital-first economy.
In the beginning, RTPs gained traction by aligning the interests of key stakeholders—banks seeking efficiency, businesses wanting lower-cost alternatives, and consumers looking for immediacy and convenience. Their early success was grounded in solving real-world pain points and leveraging trusted infrastructures. But that initial momentum has not guaranteed long-term dominance. The competitive landscape has rapidly evolved, with dozens of new payment options emerging, each with its own niche value proposition.
To remain relevant, RTPs have had to broaden their capabilities. The once-narrow offering of instant fund transfers has grown into a fuller financial toolkit. By targeting in-person payments, offering installment credit, and supporting recurring billing and one-click experiences, RTPs are starting to offer the kind of utility once reserved for mature legacy systems like cards. These enhancements are crucial in positioning RTPs as viable, everyday payment options that can serve a wider range of use cases.
Yet even as RTPs have expanded their bundles, they face a defining challenge: scale. RTPs remain mostly national in scope, tailored to specific market infrastructures, regulatory environments, and consumer behaviors. Unlike the globally interoperable card networks that dominate international commerce, RTP systems are still fragmented and localized. This reality limits their reach and slows their growth in major economies like the US and UK, where adoption has lagged despite significant investment.
Overcoming these barriers will require greater international cooperation, regulatory harmonization, and the development of standards that allow RTPs to interconnect across borders. Efforts are already underway, with pilot programs and bilateral arrangements pointing toward a more unified future. But that journey will take time and trust. Governments, banks, fintechs, and infrastructure providers must collaborate not only on technical compatibility but also on broader issues like fraud prevention, dispute resolution, and data security.
Despite these challenges, the trajectory of RTPs remains promising. They are evolving from upstart alternatives into mainstream options, gradually capturing more mindshare and market share. Their continued progress will depend on their ability to integrate seamlessly into consumers’ daily lives, compete with legacy methods on convenience and reliability, and eventually transcend national limitations to achieve global relevance.
As the payment landscape continues to diversify, RTPs will not be the only solution—but they will be a critical part of the future. Their growth signals a broader transformation in how money moves: faster, cheaper, and more intelligently. For businesses, embracing RTPs is no longer just about staying current—it’s about staying competitive in a world where expectations around payment speed, flexibility, and user experience are only accelerating. For consumers, RTPs promise more control, more options, and a payment experience that aligns with the pace of modern life.
This concludes our exploration of RTPs and their evolving role in a dynamic global economy. While much remains uncertain, one thing is clear: the race to shape the future of payments is well underway, and real-time systems will be central to that story.
