The BIS Committee on Payments and Market Infrastructures (CPMI) has published a report on the development and importance of fast payments services. Fast payments make funds available quickly and can be used around-the-clock. According to the CPMI, which is the global standard setter for payment, clearing and settlement services, the number of fast payment services has more than doubled since 2010 across CPMI jurisdictions.

The number of fast payment services are expected to grow further, offering greater choice for customers making time-sensitive payments. Fast payments also allow better tracking of payments and help improve cash management for businesses, supporting financial inclusion.

In its statement, the CPMI said: “However, they do create challenges for payments systems and may have implications for central banks and other stakeholders.”

Benoît Cœuré CPMI chairman said: “Fast payments have the potential to generate benefits for various stakeholders and for society in general, provided that risks are properly managed. They can play a key role in upgrading and modernising a jurisdiction's payment system. Central banks can contribute to the development and implementation of fast payments through their traditional roles as catalysts for change, as well as operators and overseers of payment systems.”

The CPMI's report sets out key definitions and concepts of fast payments, as well as covering the following:

• fast payments in the context of the broader payments system;
• advances in technology;
• potential obstacles;
• clearing and settlement issues;
• processing models;
• benefits and risks; and
• impact of fast payments on risk.

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CTMfile take: This report supplies some useful insight into the risks and processing models for fast payments.