Payment settlement is speeding up dramatically. Transactions that once took three days (T+3) moved to two days (T+2), and now we’re rapidly shifting to one-day (T+1) or same-day settlement. This is driven by new government rules and the spread of real-time payment systems worldwide. Banks and payment processors must upgrade their old batch-processing systems to keep up.
Examples are everywhere. The U.S. SEC made T+1 mandatory in May 2024, while India introduced same-day T+0 settlement for certain stocks. Meanwhile, instant payment systems like FedNow, UPI, PIX, and SEPA Instant are expanding globally. Financial companies now need new technology that processes payments instantly, monitors money flow continuously, and runs 24/7.
From T+2 to T+1 to T+0
Under the traditional T+2 model, trades executed on day T are settled two business days later. This allowed institutions to rely on overnight batch processing, delayed reconciliation, and static liquidity models. While familiar, the approach created extended counterparty risk windows, limited real-time visibility, and operational complexity across regions and time zones.
The move to T+1 compresses these timelines significantly. Settlement must now be completed by the end of the next business day, forcing intraday clearing cycles, faster exception handling, and more precise liquidity forecasting. Processes that once ran overnight must operate continuously throughout the trading day.
T+0 settlement represents the next stage. In its most advanced form, transactions clear and settle immediately after execution, often through real-time gross settlement mechanisms. Even where continuous settlement is not yet fully implemented, markets are moving toward multiple intraday settlement cycles that closely approximate real-time operation. Batch-centric architectures are increasingly misaligned with these requirements.
Regulatory and Market Drivers
Settlement acceleration is driven by both regulation and infrastructure evolution. In the U.S., the combination of the SEC’s T+1 rule and FedNow’s 24/7 real-time payments framework reduces settlement risk while enabling instant interbank liquidity movement using ISO 20022 messaging.
In Europe, SEPA Instant has normalized near-instant euro payments, with mandates requiring broad bank participation. Securities settlement infrastructures are also aligning with global T+1 standards, increasing pressure on back-office systems to support real-time processing.
In Latin America, adoption is shaped by a mix of domestic instant payment schemes and card-network-enabled real-time clearing. Brazil’s PIX has become a dominant real-time rail, while Mastercard Real-Time Clearing supports near-instant clearing and funds availability for eligible card-based transactions in select LATAM markets. Supporting these parallel infrastructures requires platforms that can handle real-time settlement across multiple rails without fragmenting clearing or reconciliation.
Technical Requirements for Real-Time Settlement
T+0 settlement cannot be achieved through incremental optimization of legacy platforms. It requires purpose-built capabilities across messaging, ledgering, liquidity management, and resilience.
ISO 20022 has become the standard messaging format for real-time payment and settlement rails, including FedNow, SEPA Instant, and Mastercard RTC. Native support is essential for straight-through processing and real-time validation.
At the core is a real-time ledger capable of sub-second posting, position control, and continuous reconciliation across active-active deployments.
OmniPayments and T+0 Readiness
OmniPayments supports real-time clearing and settlement through a modular, NonStop-optimized architecture designed for continuous operation. OmniCompensator provides clearing and settlement orchestration for T+1 and T+0 models, including real-time position tracking and ISO 20022 message handling across multiple rails.
OmniPayments supports integration with real-time clearing rails, including domestic instant payment systems and Mastercard RTC in LATAM, enabling institutions to manage card-based and account-to-account real-time flows within a unified settlement architecture. OmniDash provides real-time visibility into settlement positions, liquidity status, rail connectivity, and exceptions, replacing delayed reconciliation with continuous operational insight.
Conclusion
Settlement acceleration is no longer optional. T+1 is already mandatory in key markets, and T+0 is rapidly becoming the operational benchmark. Institutions that delay modernization risk higher operational costs, increased risk exposure, and competitive disadvantage.
