Whether it’s clicking on a link or waiting for a video to load, one thing is for certain: we live in a society where everything needs to happen quickly, and payouts are no exception.
In 2025, consumers expect their money instantly. The adoption of the EU’s Instant Payments Regulation, a key driver of this development, requires banks to work with payment providers to ensure that money is transferred within seconds.
According to Manfred Schulz, Head of Merchant Solutions at Brite, it’s a great development, but it’s one that merchants need to keep up with:
“I think it’s important for merchants to understand customer expectations regarding payment. Money needs to be transferred immediately; if they don’t offer a solution that supports this, they will have a problem. Otherwise, they will fall behind and remain in the old-school merchant category, where customers have to wait two to three days for their money to arrive.”
In this article, we’ll explore six key facts about instant refunds that merchants need to know in 2025:
- Consumers expect their money instantly
- SEPA Instant is driving the adoption of instant refunds
- Pay by Bank is boosting customer satisfaction
- The benefits for merchants are substantial
- Offering instant refunds is more important than ever
- Even tax refunds are getting instant
1. Consumers expect their money instantly
Consumer expectations for payout speed have shifted dramatically. According to our Online Payment Trends report 2025 for Germany, 43.6% of consumers expect to have their funds within 60 seconds.
George Parks Davie, Vice President of Product at Brite Payments, believes this expectation will only continue to shift:
“I anticipate a significant increase in the number of customers expecting funds to arrive within 60 seconds, perhaps even under 10 or 5 seconds.”
In other words, offering instant refunds is essential if merchants want to keep up with customer expectations.
2. SEPA Instant is driving the adoption of instant refunds
Germany is quickly establishing itself as a leading market in instant payments. High adoption rates, supportive regulation, and falling fees drive this development. More banks, businesses, and consumers are embracing instant payments for their speed and convenience. New EU rules are making it mandatory for all banks to offer them at no extra cost compared to regular transfers.
As George Parks Davies notes:
“I believe the German market demonstrates great potential and stability regarding instant payments, particularly through SEPA instant payments. We see this reflected in [our] data, showing that over 99% of all payments [made via Brite Payments] in Germany are settled via SEPA and completed within seconds.”
This high acceptance rate for sending and receiving SEPA instant payments and reduced fees is now opening the door to instant refunds. It’s a natural next step in a market where speed, reliability, and consumer experience are becoming top priorities.
3. Pay by Bank is boosting customer satisfaction
On the instant refunds board, Pay by Bank is another central player – and it’s popular with customers for a reason. Manfred Schulz explains:
“Logging in with your existing bank credentials is particularly attractive. […] [Y]ou don’t have to create a new account or register somewhere new. You can simply use your existing credentials and bank accounts. You log in regularly when you check your bank account, so it feels seamless. I believe this ease of access is a significant benefit.”
Pay by Bank is particularly attractive in industries where receiving funds instantly is key. Schulz elaborates:
“For instance, in betting, it’s essential to have instant access to your winnings. Similarly, when returning items, you don’t want to wait several days; the process should be quick.”
Pay by Bank offers a seamless route to customer satisfaction – so much so that according to our Online Payment Trends Report 2025 for Germany, 75% of users find it so smooth they’d use it again.
For merchants using Pay by Bank powered by Brite Payments, there’s an added bonus: instant refunds and payouts come as standard. It’s another reason why offering Pay by Bank isn’t just smart – it’s a no-brainer.
4. The benefits for merchants are substantial
Customers aren’t the only ones benefiting from Pay by Bank and instant refunds. For merchants, the benefits are substantial. Martin Schulz explains:
“[…] [I]f customers love to pay by bank, merchants will automatically benefit from that and also lower operational efforts on their side because the payment is done. It’s like a credit card but much cheaper. Yeah. You don’t have so much hassle with many refunds, missing invoices, etc.”
To elaborate, here’s a closer look at the key benefits merchants stand to gain from instant refunds:
- Faster customer service: When customers get their money back within seconds, it improves trust, satisfaction, and brand loyalty, especially in sectors like e-commerce, travel, or ticketing, where refunds can be common.
- Lower operational costs: With traditional refunds, merchants often deal with payment processing delays, missing invoices, failed transfers, and manual reconciliation headaches. Instant refunds via SEPA Instant or similar rails automate and simplify that process, reducing admin time and costs.
- Better cash flow visibility: Because instant refunds settle in real time, merchants have immediate visibility over outgoing funds. This helps with liquidity management, forecasting, and avoiding issues caused by pending refunds clogging up balance sheets.
- Cheaper than card refunds: Credit card refunds can be slow and come with extra fees and chargeback risks. Instant refunds through account-to-account (A2A) payments like SEPA Instant are faster and often much cheaper, with fewer intermediaries involved.
- Fewer customer complaints and support tickets: Slow refunds often lead to customer frustration and additional support queries. Instant refunds reduce refund-related support tickets and customer complaints, easing pressure on customer service teams.
- Flexible for high-volume industries: In sectors where partial refunds, cancellations, or deposit returns are frequent (like gaming, mobility, marketplaces, or gig economy platforms), instant refunds streamline operations and improve the user experience without the lag of card payment systems.
See how instant refunds can help e-commerce companies build their brand.
5. Offering instant refunds is more important than ever
In a world where you can order a taxi or get groceries delivered in minutes, waiting three to five days for a refund feels outdated and frustrating. That’s why it’s never been more important to offer instant refunds. As Schulz emphasises:
“Money needs to be transferred immediately; if [merchants] don’t offer a solution that supports this, they will have a problem.”
For merchants, failing to offer instant refunds means:
- Higher customer churn: People are likelier to avoid merchants or platforms that make it difficult or slow to get their money back.
- More complaints and support costs: Delayed refunds lead to a surge in customer service tickets and negative social media feedback.
- Competitive disadvantage: As more businesses offer instant refunds, those who don’t risk looking slow, unreliable, or outdated.
- Cash flow headaches: Pending refunds can leave unresolved balances and disrupt real-time cash flow visibility, especially for high-volume merchants.
As George Parks Davies highlighted, combining high SEPA Instant acceptance rates and new regulations lowering fees removes the financial and technical barriers to offering instant refunds.
Not adopting instant refunds in this environment isn’t just inconvenient – it’s commercially risky.
6. Even tax refunds are getting instant
In commerce, instant refunds are steadily becoming the norm, but can you get an instant tax refund? Depending on where you live, the answer is yes!
In the UK, HMRC has rolled out open banking across all tax payment types capable of supporting it – PAYE (Pay-As-You-Earn) payments, corporation tax, and value-added tax (VAT) – and is exploring faster, real-time refunds using this technology.
Depending on where you live, you might soon get your tax refund within seconds rather than waiting days. It’s another sign of how instant payments are reshaping everyday financial experiences, from shopping to tax season.
Conclusion
If you would like to delve into more stats and insights about the state of online payments in Germany in 2025, then check out our latest report: Online Payment Trends for Germany 2025. In it, you will find the latest findings about Pay by Bank and how, combined with instant payouts or refunds, it offers e-commerce merchants the best possible advantage going into 2026. Or if you would like to get in touch with our payment experts directly to talk all things payouts and refunds, then fill in our contact form!
