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Instant Payments are electronic payments that allow users to send and receive money in real-time, usually within 10 seconds. Instant payment systems, which facilitate instant payments, operate 24 hours a day, seven days a week, and 365 days a year and allow for multiple types of transactions, including person to person transactions, transactions between individuals and businesses, between businesses and other businesses, businesses and Government, and Governments and individuals.
Read this article to learn more about the features of instant payments.
The Central Bank of Barbados is introducing an instant payment system as part of its efforts to modernise the national payment system. The goal is to ensure financial inclusion for all Barbadians, improve the ease of doing business, in part by reducing payment delays that create cash flow challenges for small businesses, and encourage innovation by providing a base platform on which entities in the financial technology space can build.
The system first verifies the sender’s identity through multifactor authentication (this includes a combination of passwords, PIN codes, or biometrics). It then confirms that the sender has sufficient funds in their account or digital wallet and that the recipient’s information is correct before executing the transaction. The sender and the recipient both receive a notification confirming the transfer, and the system settles the transaction, making the funds instantly available to the recipient. This is all completed in a matter of seconds.
While Automated Clearing House (ACH) transactions can take hours to several days to complete and operate on banking hours. Real-Time Payments (RTP) transactions are faster and typically settle within minutes. However, their availability outside of regular banking hours depends on the financial institution. In contrast, instant payment systems complete and settle transactions within seconds and are available 24/7, 365 days a year, including nights, bank holidays and weekends.
In addition, instant payment systems do not require you to have the recipient’s banking information, and, in fact, do not require either you or your recipient to have an account at a financial institution.
Read this article for more information on the differences between instant payments and ACH/RTP.
Instant payments offer multiple benefits, including
Read this article to learn more about the benefits of instant payments and then learn more about the security features built into instant payment systems.
Because transactions are settled immediately, transfers you make via instant payments are irrevocable. It is therefore important that you ensure you have entered correct information before confirming the payment. The system will prompt you to re-check the payment details before you hit send.
Instant payments are very safe. They use encryption, multi-factor authentication, and real-time fraud detection systems to protect your money and information.
Yes. You will be able transfer money to a relative or friend in Barbados, and that person doesn’t need to bank with the same financial institution that you do. In fact, neither you nor they need to have an account at any financial institution at all.
Yes. You will be able to use BiMPay to pay your utility bill. You’ll also be able to buy groceries, to fill up at the gas station, or even to renew your driver’s licence.
While the plan is for BiMPay to be able to facilitate cross-border transactions, in the initial stages, you will only be able to use it to send and receive local payments.
No. You can send money to anyone using the instant payment system, even if they use a different bank or payment provider.
Yes. You will be able to use BiMPay even if you don’t have a traditional bank account. That’s because the instant payment system also integrates with digital wallets.
No. Because instant payment systems use real-time settlement, transactions are generally irrevocable. It is therefore important that you review the details carefully before confirming a payment. The system will prompt you to do this before you hit send. If you do make an error in your transaction, contact your financial institution or payment service provider immediately as delays in reporting the error could reduce the chance of recovering the funds.
If you accidentally send money to the wrong person, contact your financial institution or payment service provider immediately. Your institution might contact the person or business that received the funds to ask them to return it.
No. BiMPay is not a central bank digital currency. A CBDC is a type of currency, while BiMPay, as an instant payment system, is a way of sending and receiving payments.
Read this article for more information on the differences between instant payments and CBDCs.
BiMPay will become the platform (or payment rail) on which all existing (and future) digital wallet services will sit. These services will continue to operate, but because the base platform will be the same, they will be fully interoperable.
In short, BiMPay will facilitate these services, not replace them.
Yes. It will be mandatory for commercial banks and some other financial institutions to become participants for the national instant payment system.
Only authorised institutions such as your bank, the receiver’s bank or payment provider will have access to your information. Your information is protected by strict privacy and security rules.