Instant payments will necessitate European infrastructure overhaul
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Instant payments will necessitate European infrastructure overhaul

As mandated real-time payments loom, Europe’s banks and other payment providers must look at modernising legacy infrastructure.

Illustration: Pixabay

Are European banks underestimating how many payments they will need to process per second to support instant payments?

According to a survey of 200 senior payment professionals at European banks published by RedCompass Labs in late March, most lenders are aiming to be able to process 100 to 300 payments per second by the end of 2025. Just 5% said they were targeting above 1,000.

Bulk payment files can contain hundreds of thousands of payments.

Instant payments offer the opportunity to focus on a concrete business case that can benefit other lines of business
Frédéric Viard, Bottomline
Frédéric Viard_960.jpg

By consolidating the processing of different payment types and associated payment rails into one solution instead of multiple applications, banks could not only achieve big cost savings but also accelerate innovation and time-to-market while improving the customer experience.

According to Francesco Simoneschi, chief executive of TrueLayer, the Sepa credit transfer (SCT) scheme rules could spark a real-time payments revolution in Europe – especially when Sepa Instant is paired with open banking technology.

The EU has long been looking for ways to reduce dependence on US card schemes, and combining instant payments with open banking to create a home-grown account-to-account payment method is an obvious solution.


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