There’s actually a pretty simple explanation for German banks taking their time — the current system works very well. The benefit of moving from a normal credit transfer in Germany, which takes two to four hours normally, to an instant payment that’s done in five to 10 seconds is not a huge benefit for the vast majority of payments.

The vast majority of payments are scheduled a day or two in advance anyway, like people’s salaries, dividend payments from investments or pensions and other payments like direct debits that are not eligible to be made into instant payments anyway. So, the current system serves most purposes quite well.

Read More.. DW

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