Today is a big day for Open Banking. We welcome the European Commission’s new legislative proposal on instant payments, which will ensure:
Ubiquity
Now: In 2022, only 11% of all euro credit transfers in the EU were instant
Next: Instant payments will become available on a Pan-European basis from banks across the 27-country union
Availability
Now: Traditional credit transfers are received by PSPs during business hours and arrive at the payee’s account up to 3 days later
Next: Instant payments will be available 24/7/365 — and processed within 10 seconds
Affordability
Now: Transaction costs for instant payments are up to €30 per payment in some countries
Next: Instant payments will be offered at a fee that is the same or lower than traditional non-instant credit transfers in euro
This move is a major enabler for Open Banking enabled A2A payments as they continue to become a truly mainstream, Pan-European payment method.
Not only will this legislative proposal boost competition, it will ultimately create better payment experiences for consumers and businesses across the payments value chain.
Win-win.