In many countries, instant payments are already the norm – money moves in seconds, businesses get paid in real time, and card networks face growing competition. But in Georgia, we’re still waiting. The National Bank of Georgia has announced that instant IBAN transfers will be introduced in 2026.
Why Georgians Hold So Many Banks Accounts?
Most Georgians have at least two IBAN accounts – often with Bank of Georgia and TBC – plus others for payroll or loans. Personally, I have accounts with four Georgian Banks, though I may be an exception.
Why so many? One key reason is transfers. Moving money between banks usually takes about 30 minutes on a business day, but if it’s after 18:00 the transfer won’t settle until the next day and if it’s a weekend, the funds won’t arrive until Monday.
To avoid delays, people keep funds spread across banks. Paying your nanny, tutor, or plumber? You need to know which bank they use. Transfers by personal ID are popular, but they’re instant only if both parties are with the same bank.
Workarounds Today
Fintechs sometimes hold accounts in all major banks, making internal transfers instant. But this is costly and not widely used.
Banks have introduced instant card-to-card transfers, which are popular. But to send money to another bank, you often need to first transfer to your own card in that bank, then move the funds internally. A clever workaround, but far from seamless.
What will change in 2026?
Instant payments will simplify everyday money transfers, reduce the need for multiple bank accounts. With the arrival of instant IBAN transfers customers will be able to send money instantly between any Georgian banks. People will no longer need to maintain two or three active accounts “just in case”. Card-to-card transfers will lose volume, as instant IBAN transfers become the preferred option.
Lessons From Other Countries
The impact in Georgia will likely mirror trends elsewhere:
- In Brazil (Pix) and India (UPI), instant payments dominate everyday transfers, while Visa and Mastercard are mainly used for POS and credit.
- In Europe (SEPA Instant), bank transfers are gaining ground in bill payments and disbursements.
- Instant rails are cheaper – sending $100 can cost less than $0.10, compared to card payments, which generate higher fees.
The result? Banks and merchants shift volume away from cards, especially for utilities, government, and rent.
How Card Networks Response?
Card networks aren’t disappearing – they’re adapting:
- Investing in infrastructure (Visa bought Tink, Mastercard bought Vocalink).
- Launching real-time products like Visa Direct and Mastercard Send, enabling instant wage payouts and insurance claims.
- Adding services on top of instant rails, such as fraud prevention, tokenization, and authentication.
They are transforming from card networks into multi-rail payment orchestrators, competing not only on cards but also on bank transfers, open banking, and tokenized payments.
Instant payments aren’t just a competitive threat; they’re a catalyst for evolution.
The future belongs to payment networks that can combine speed, intelligence, and flexibility, regardless of the rail.
Author: Mariam Gogia