Instant Payments in Europe – Are you ready for the new regulations?
The EU Parliament has been attempting for several years to increase the uptake of instant payments in the EU – however it still stands at around 11% of CT traffic. New regulations have now been approved by the EU Parliament to make instant payments fully available in euro to consumers and businesses across the EU and EEA countries.
The new regulations on instant payments in Europe came into force on February 26, 2024. Time is of the essence for financial institutions (FIs) that are impacted to meet the new requirements and challenging timelines. They must:
- Be ready to receive (in 9 months) and send (in 18 months) instant payments with a 10 sec turnaround time and charging no more for the service than non-instant SCTs.
- Provide a scalable, 24x7x365 service through any incoming channel (e.g. mobile banking) with support for bulk payments.
- Exercise proper fraud management including (at least daily) sanctions screening and a verification of payee service.
In this factsheet we consider:
- How the requirements of the new regulation will impact FIs' current payments ecosystems.
- The features of Finastra's Payments-as-a-Service solution that ensure simplified onboarding to a future-proof service.
- How our co-innovation platform, FusionFabric.cloud provides pre-integrated access to a growing marketplace of fintech solutions to deliver value-added services.
