Questioning IPS Design Inclusivity: Unlocking Fintech and Non-Bank Participation in Domestic Instant Payment Systems

Instant Payment Systems (IPS) are increasingly recognized as critical digital public infrastructure, enabling real-time, low-cost, and interoperable payments that can support economic participation and financial inclusion. However, while many countries have invested heavily in the development of IPS, less attention has been paid to whether fintechs and non-bank financial service providers are able to participate on fair, practical, and sustainable terms.

This paper examines the experiences of fintechs, non-bank providers, and industry associations across multiple markets to understand the barriers and enablers shaping participation in domestic IPS ecosystems. Through qualitative research and stakeholder engagement, the assessment explores how economic, regulatory, governance, consumer-facing, and technological factors influence participation. 

The findings suggest that IPS inclusivity extends beyond technical interoperability and access. Participation is shaped by the commercial viability of IPS engagement, the proportionality of regulatory requirements, the inclusiveness of governance arrangements, the quality of consumer experiences, and the reliability and accessibility of underlying infrastructure. Where these factors are not adequately addressed, fintech and non-bank participation may be constrained, limiting competition, innovation, and the ability of IPS to contribute to broader financial inclusion objectives.