Instant payments: the future of finance is closer than you think

The future of payments isn’t coming; it’s already here. As instant payments gain regulatory traction across Europe, the real work begins turning legislation into large-scale, value-driven adoption. Following her recent Finextra TV interview at NextGen Nordics, Majda Nogo from Worldline discusses what’s at stake, the risks to avoid, and how collaboration will shape Europe’s financial future.

“This is our chance to build something fundamentally European,” Majda explains. “It’s not just about faster payments. It’s about financial sovereignty.”

Indeed, the motivation behind instant payments runs deeper than technology. This shift is being driven by three connecting forces: the need for economic efficiency, the ambition for strategic independence, and the expectations of a digitally native consumer base. The European Commission estimates that up to €200 billion is currently locked up in slow settlement processes, capital that could otherwise be fueling innovation and growth. Freeing that liquidity could be transformative for European businesses.

But the case for instant payments goes beyond numbers. It’s also a matter of control. “Europe has been relying on global giants in the payment space for too long,” Majda says. “Instant payments are a critical step toward creating a robust, independent infrastructure that we own and govern.”

The regulatory foundation for this transformation is now firmly in place. The EU’s Instant Payments Regulation ensures that real-time transfers are no longer a premium feature. These features must be offered at the same price as standard transactions. It’s a major step forward. Still, “Legislation is necessary, but it’s not enough”, says Majda.

True adoption, she explains, comes down to execution. Markets that treat instant payments as a default, not a luxury, are seeing strong uptake. In the Netherlands, for example, banks implemented instant payments with no additional fees and saw widespread use as a result. But there where complexity or cost have been barriers, adoption has lagged.

Equally important is how banks and providers bring these capabilities to life. “This isn’t about individual competitive advantage,” Majda emphasizes. “It’s infrastructure. And infrastructure only delivers value when it’s shared, interoperable, and built around real, everyday use cases.”

Yet with this new infrastructure comes new risks, most notably: fraud. Because instant payments are, by definition, irreversible once completed, fraudsters are shifting tactics. Rather than hacking systems, they increasingly manipulate people. Social engineering attacks have surged, with criminals creating high-pressure scenarios such as fake security alerts or urgent calls for help that bypass rational thinking.

“The psychology is replacing the technology,” Majda notes. “We’re not just fighting code anymore. We’re fighting fear, urgency, and trust.”

Organized fraud networks now move stolen funds across multiple accounts and countries within minutes. Meanwhile, tools like deepfake voice technology and man-in-the-middle attacks are making deception even more convincing. The result? A widening gap between fraud detection and fraud recovery. While card-based payments typically see recovery rates of around 98%, for instant payments, that figure drops to just 28%.

“This changes everything,” Majda says. “We used to detect and reverse fraud. Now, prevention is the only line of defense.”

Fortunately, technology is rising to meet the challenge. Approaches like Verification of Payee, already mandatory under EU rules, have reduced fraud by more than 80% in some markets. Generative AI now enables fraud detection systems to analyze massive amounts of data in milliseconds, making smarter decisions with less user friction. Behavioral biometrics and collaborative intelligence networks, where banks share insights and threat patterns in real time, are pushing fraud protection into a new era.

Still, there’s a balance to strike. “If we’re not careful, fraud controls can end up hurting legitimate customers,” Majda warns. Systems that are too rigid may block valid transactions, while excessive authentication can frustrate users and drive abandonment. “It’s about applying the right level of security for the actual risk – not just ticking boxes.”

So, what’s next? “The technology is ready. The rules are clear. And the business case is stronger than ever.” She points to the real-world benefits already visible across Europe: faster payroll processing, instant insurance payouts, seamless in-store transactions without the need for cards, and simplified bill payments. As initiatives like the European Payments Initiative gather steam, the region is on the cusp of a more dynamic, open, and competitive financial ecosystem.

Even central banks are watching closely. Many see instant payments as a proving ground for the digital euro, using today’s rails to test tomorrow’s currency models.

And perhaps most significantly, consumer expectations are evolving fast. “Once people experience what it’s like to send and receive money instantly, they won’t want to go back,” Majda says. “In five years, instant payments won’t be an upgrade. It will be the standard.”

Instant payments are not just about speed. They’re about enabling entirely new financial services that haven’t been imagined yet – much like how smartphones paved the way for an app-driven economy. “The question isn’t if instant payments will become standard, but which banks and companies will lead this change – and which will fall behind.”

Watch Majda’s full interview with Finextra TV: Successful Instant Payments Adoption：Is Regulation Enough?