Critical Assessment of Instant Payments as a Solution for the German Market

Master's Thesis from the year 2016 in the subject Business economics - Trade and Distribution grade: 17 University of applied sciences Cologne language: English abstract: Regulators recognize digitalization and increased economic speed and derive the necessity of a new payment instrument that accelerates payments. This is assumed to address the consumers' behavioural change due to instant messaging which substantiates a new consumer demand for instant payment execution. Subsequently a new electronic payment instrument was conceived by the European Central Bank (ECB) and further refined by two industry stakeholder associations. This concept for a new payment system is commonly referred to as Instant Payments and shall be the field of attention for this thesis. This work has two main objectives in regards to the European concept of Instant Payments as in discussion today. The first aim of this work is to examine the factual basis for the ECB's rationale by analysing the German payment market ultimately aiming at a conclusion on the attractiveness of an Instant Payments solution for the German payment market. Subsequent and referring to this market examination the second objective is to identify a suitable design and a possible implementation approach for an Instant Payments solution in Germany.