The Swedish central bank, Sveriges Riksbank, opened their RIX INST system in November 2024 to support additional instant payments beyond Swish. In short, RIX INST (Real-time Interbank Settlement) is a modernization of Sweden’s payment system which enables real-time transfers between financial institutions utilizing the ISO 20022 messaging standard. All participating banks have been working hard on this project for years, a few of them with help from 421. We sat down with Niclas Lindblom, Senior Manager at 421 and RIX INST expert, to explore several potential product ideas and business cases that could emerge from this groundbreaking technology.
Northmill Bank: Gaining the First Mover Advantage?
While most banks are currently focused on meeting the technical requirements to be able to receive instant payments, some smaller players have already begun announcing their plans for new products. In December 2024, Northmill Bank announced plans to launch services based on the RIX INST system, focused on providing instant payouts for businesses. Companies that need to make fast payments to employees, suppliers, or partners will greatly benefit from this capability, giving Northmill Bank possibly a competitive edge.
Building Your Product Roadmap: Opportunities Ahead
By expanding the RIX INST system to include players beyond Swish, a wide range of new product opportunities could emerge. We expect the initial products launched on the Swedish market to be specifically designed to meet the needs of various industries and business transactions. This focused approach will allow banks and other stakeholders to position themselves as key players in the evolving instant payments landscape. Below, we’ve highlighted a selection of ideas to inspire your own product development.
Multi-Banking Account Linking for Flexible Payments:
A service that enables users to link multiple accounts, potentially from different banks, allowing them to select the account they wish to use for instant payments at the time of the transaction. Currently, Swish, the main user of RIX INST, only supports direct transactions from a single account. This enhancement would provide users with greater control over their payments and improve financial management, particularly for individuals and businesses with multiple accounts.
24/7 Payment and Settlement Capabilities:
A 24/7 real-time payment and settlement system for both businesses and individuals, extending beyond typical working hours. This would be especially useful for businesses that operate globally or outside regular office hours. It offers flexibility in international trade, corporate treasury, and emergency transactions, while ensuring businesses can manage their finances around the clock.
Instant Insurance Payouts:
A service that enables instant payouts for insurance claims, allowing policyholders to receive compensation immediately after claims are approved. This is particularly relevant in sectors like health, auto, and property insurance, where customers often face financial strain following an incident. Instant payouts would not only improve the customer experience but also streamline operational efficiency for the insurance companies. Although Swish already offers an instant payout product for companies, RIX INST would allow companies to pay out directly from their bank account, without having to buy a Swish product and getting a Swish number.
Real-Time Invoice Payments:
A service that enables users to instantly pay overdue invoices or late bills in real-time, helping to avoid costly late fees. This capability is especially beneficial for managing high late fees, such as those associated with congestion charges or student loan debt, which can accrue rapidly. By enabling payments during the grace period of an invoice, individuals and businesses can reduce the financial burden of late fees, maintain better cash flow, and preserve relationships with suppliers or service providers.
Instant Refunds for In-Store returns:
Instant payments when customers return products in stores, allowing them to receive refunds in real time rather than waiting for traditional processing times. This would greatly enhance customer satisfaction and loyalty. Instant refunds can be a key differentiator for retailers and improve the customer experience by minimizing the waiting time typically involved with returns and refunds.
What’s next?
In the coming years, we expect RIX INST to have a profound impact on the Swedish and Nordic payment landscape. Based on the TIPS system from the European Central Bank (ECB), RIX INST offers significant potential for interoperability with similar systems across Europe, such as those supporting euro payments. This foundation enables the possibility of seamless cross-border instant payments, facilitating greater integration between Nordic and European payment systems.
Furthermore, we foresee that the technological landscape will need to adapt further to instant payments, as many systems, such as ERP and AML systems, are using technologies designed for batch payments. Over time, these systems will need to evolve in order to enable large scale adoption of instant payments.
We hope our message has provided you with some valuable insights for your RIX INST project. If you’d like to learn more about how the 421 team can support your initiative, please feel free to reach out to us using the contact form below.
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