Instant payments are non-cash transfers provided 24 hours a day, 7 days a week, 365 days a year, including holidays and weekends. Customer payments are executed within a few seconds and the money received can be reused immediately.
Latvijas Banka has developed a system enabling banks to provide instant payment services to their customers: an opportunity to transfer money from an account in one bank to an account in another bank within a matter of seconds on any day and at any time of the day. Both individuals and business customers of banks will be able to make instant payments as soon as several Latvian banks have connected to Latvijas Banka's system or any other European instant payments system that has link with Latvijas Banka's system.
It is expected that a wider use of instant payments in everyday payments across Europe will start in November 2017 when several banks in Latvia and elsewhere in Europe will introduce this service using the instant payments system RT1 operated by EBA Clearing, a capital company established by European banks.
FAQs on instant payments
How will instant payments be implemented? Shall I have to visit my bank?
Will instant payments be available to everybody?
How instantaneous is "an instant payment"?
Will instant payments be available on weekends and holidays?
Will I be able to make cross-border payments in the same manner?
What is the limit for an instant payment?
Are instant payments available for smartphone users?
Can instant payments be used for online shopping?
What would be the most typical examples of using instant payments?
- - a quick transfer to a relative or a friend who does not have enough cash with him /her and money in the account for an unplanned purchase;
- - simply a quick transfer to a relative or a friend within a matter of seconds on any day and at any time of the day;
- - a payment for goods or services ordered, avoiding the need to make an advance payment or use cash;
- - a payment for goods or services delivered to your household while you are abroad;
- - a quick transfer from a relative of yours working abroad (e.g. in Germany or Ireland), including a payment from his/her bank account in the respective country.
Speaking in the language of modern technologies, instant payments are WhatsApp for money .
What are the benefits of instant payments?