How Do Instant Interoperable Payment Systems Transform Modern Economies?

This research brief synthesizes recent academic findings on the effect of Instant interoperable payment systems (IIPS) on enhancing financial inclusion, spurring economic growth, and fostering innovation in the financial sector. Drawing on studies from India and Brazil, it highlights how IIPS can deepen engagement with financial services, increase access to credit, and improve monetary policy transmission. While the evidence underscores the significant benefits of IIPSs, it also emphasizes the importance of contextual factors such as existing levels of financial inclusion and regulatory environments. Practitioners are encouraged to consider these insights to inform the design and implementation of IIPS, ensuring they are tailored to local conditions to maximize their impact on underserved populations and the broader economy.