2 PAYMENT METHOD PROFILES: PAY BY BANK
Characteristics
Debit/Credit Functionality Most real-time payments transactions are currently debit based, meaning the funding source for the rail is an account balance. Brazil’s Pix is an example of a debit-only real-time payment method, although some financial institutions are allowing consumers to fund Pix transactions via credit cards. 518 India’s UPI is leading the way in terms of innovative funding sources for real-time payments. “Pre-sanctioned Credit Lines on UPI” has been developed in line with the Reserve Bank of India’s vision to transform consumers’ access to credit in order to foster economic growth and enhance financial inclusion. 519 BillPay/Recurring Payments When considering bill pay/recurring payments, Australia’s PayTo 520 has launched recurring functionality and Pix in Brazil 521 has implemented recurring payments as of June 2025. These developments mark a significant shift, as recurring capabilities are an evolving frontier for instant payment platforms with Brazil and Australia leading the way. Settlement Time Implied by their name, real time payments are settled very quickly compared to other tender types. However, perhaps counter-intuitively, they are not instant. For example, SEPA Instant Credit states funds are made available after “a maximum duration of nine seconds.” 522 U.K. Faster Payments transfers “usually clear within seconds. In rare cases, they can take up to two hours.” 523 The Central Bank of Brazil states that Pix clears “in a few seconds” and the Federal Reserve states FedNow transactions settle“ within seconds.” 524, 525
Authorization In terms of security, user identification, and authorization, instant payment platforms use similar authorization as traditional bank transfers, including log-in credentials to bank accounts, mobile phone numbers, and government issue identification.
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