Inclusive Instant Payment Systems: An Evidence Based Approach From Design to Impact

Inclusive Instant Payment Systems (IIPS) streamline payments between individuals, merchants, and financial institutions. These systems create a more cash-like experience by adopting technology that allows clients with different financial service providers to send and receive money. IIPS enable real time and same-day settlement, are open loop and accessible, and facilitate high volume, low value transactions. Ultimately, they have the potential to catalyze financial inclusion and positively impact financial behavior.

This white paper summarizes how interoperable payment systems work and the status of interoperability in emerging markets. The paper contributes to the global discourse around IIPS by (1) showing how economic insights can help us form expectations around the potential impact of these systems, and (2) providing guidance on monitoring, evaluating, and generating evidence-based policies.