• Beyond full interoperability, additional service features plus extension to SMEs and waiving of fees were proven to drive the adoption of payment themes
• PromptPay in Thailand and UPI India have shown the fastest adoption of real time payment systems in Asia (excluding China) with UPI transactions crossing the one billion mark in October 2019
• The creation of relevant services vastly increase the consumer experience

Real time peer-to-peer (P2P) payment themes are relatively new payment rails that enable consumers, businesses and government agencies to make real-time, data-rich payments between accounts from participating financial institutions.

Network effects have to take place, however, to realise the full benefits of these platforms. Because as the networks get larger, the benefits increase disproportionally. The network effect is what can make it difficult for new systems to get off the ground and also entrench large networks, according to the Reserve Bank of Australia. The key success for these payment themes is the creation of relevant services that sit on top of the platform and its capabilities. These services vastly increase the consumer experiences.

In the Philippines, a transaction through InstaPay – the country’s P2P micropayment platform – can cost a customer between $0.20 (PHP 10) to $1 (PHP 50) per transaction with BDO Unibank, with the transaction fee going up as high as $1.97 (PHP 100), according to data from end of May 2019 by the country’s central bank. Yet the real cost of an InstaPay transaction to the banks is about $0.020 (PHP 1), based on the Asian Banker Research.

UPI India:  Adding new features with UPI 2.0

The transactions of India’s Unified Payment Interface (UPI) crossed one billion in October 2019 and has now more than 100 million users, three years after its launch, making it one of the fastest adoption of ...

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