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GlossaryFFast Payment Systems

Fast Payment Systems

Instant electronic fund transfer systems operating 24/7 for retail transactions.

What is Fast Payment Systems?

Fast payment systems like India’s UPI or the UK’s Faster Payments enable real-time settlements, processing high volumes of low-value transactions with examples including Venmo and Zelle. Benefits include reduced costs (up to 50% lower than traditional methods), improved cash flow, and 24/7 availability, with global adoption reaching 70 countries by 2025.

In digital assets, these systems integrate with CBDCs like e-CNY, supporting 10,000 transactions per second and offline capabilities for resilience. They mitigate float risks and enhance transparency, with transaction times dropping from days to seconds.

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