Instant Payments – Analysis

The European payments landscape has changed significantly in recent years. Many new players and solutions entered the market.
We are increasingly seeing these solutions implemented through instant payments.
Peer-to-peer instant payments (Peer-to-peer transaction) are becoming more and more popular.
Instant payments are electronic payment solutions that process payments in real time, 24 hours a day, throughout the year, with the funds immediately available to the recipient for use.
Like a bank transfer, instant payments directly transfer funds from one account to another.

A well-known example of the use of instant payments by individuals is the transfer of funds via mobile phone between friends in order to split the bill at a restaurant.
This is done immediately after the initiation of the payment. Funds are instantly credited to the account of the receiving party. For this reason, instant payments are irreversible.

Instant payments for businesses are also possible, though more complex.
A good example of this use is payments in a store or (at retail outlets) using a mobile app by scanning a QR code.

Mobile Instant Payment is a service for individual bank customers:

• can make interbank transfers using a mobile phone number (P2P)
• have the opportunity to receive money from organizations
• as well as pay for purchases, including using a QR code (payment in favor of online merchants)
• There are limits on the maximum payment amount.

Payments are made either instantly or with a slight delay in time (up to 1 minute).
Tariffs for payers are free, for online merchants or lower than for card transfers (0.2 euro in some European countries).

From the point of view of operational services, payments are made not through the card account, but through the client’s current account in the bank.

In terms of technology use, online payments and mobile payments are key to the adoption of instant payments.
Regulatory developments such as PSD2 Open Banking also provide vendors with the opportunity to further develop these solutions.
Further growth of instant payments will lead to further digitalization and diversification of payments.
This will benefit consumers, businesses and trade in general.

What instant payments are not

• Instant payments are currently unable to offer the same guarantees offered by other payment methods such as high level of protection against fraud, well-developed reimbursement options, enhanced safety features, and rich involvement in innovation.
• They do not have uniform and smooth acceptance (often QR code based)
• The full transaction is often slower than a card payment, in particular contactless card payments
• They require stable internet connection, from both parties, as well as other device requirements such as a sufficient battery in case of mobile payments.

Instant payments in Europe

In this context, the European Commission advocates that Instant Payment in Europe in the case of Retail payment become the usual norm.
In addition, within the framework of this issue, we also note that in Europe the theme “Single Euro Payments Area, SEPA” is widely promoted.

Instant payments in Moldova

In Moldova, the payment method instant payments has not yet been introduced.
We note 2 important points:

• The National Bank of Moldova is interested in introducing this payment option
• None of the 11 commercial banks in Moldova have implemented this payment option yet

We, as integrator of payment solutions, welcome and are ready to promote the implementation of instant payments in Moldova.
We believe that it will complement rather than replace existing services such as bank cards.
Having multiple payment methods leads to more choice for consumers and retailers.
In addition, each payment method has different use cases.
End users should be able to decide which payment method is best for a particular purchase. At the same time, we believe in the importance of informed choice.
We believe that consumers should have access to all the information they need about the various features and different meanings, functions and costs of new payment methods.

The list of all payment methods available in Moldova is presented here.

Comparison between card, instant and cash payments

Description	Cards	Instant	Cash
Who can use it?
Consumer-to-consumer (“peer-to-peer”) payments
Consumer-to-merchant payments
Accepted by most merchants
Business-to-business payments
Where can you use it?
Physical or in-store payments
Mobile payments
Online payments
What type of protection and other services are built in?
Merchant protection against fraud (e.g. counterfeit money)
Consumer protection from fraud and unauthorised debiting
Established dispute resolution mechanisms in case of interrupted payment, non-delivery of goods or technical issues
Complimentary insurances (e.g. travel insurance, online shopping insurance, extended guarantees)
Zero liability for the consumer in case of fraud
Global fraud monitoring solutions to stop fraud and illicit activities
Improvement of businesses’ cash flow
Dedicated business solutions
Availability of credit (for businesses and consumers)
What are the costs and charges?
No charges for the consumers at point of sale
Retailer (hidden) cost
Can you pay across the border (crossborder payments)?
Functioning across currencies
Intra-regional payments between all EU Member States
International payments outside of the EU