Instant Payments and Merchants — Pricing Policy Considerations
- This technical note helps explain why changes in instant payment pricing are occurring, assesses their impact on market development, and offers suggestions for the path forward.
- When it comes to instant payments, schemes and regulators are increasingly using pricing intervention as a market-building tool.
- For schemes/regulators looking to help scale instant merchant payments, leaving out fee-sharing and letting competitive markets determine pricing is likely the best solution, in certain contexts.
- Tools beyond pricing intervention, such as subsidies and incentives, and enablers, such as tiered due diligence and digital onboarding, should also be considered in promoting low-cost transactions.