Will card schemes suffer from instant payments?
Euromoney Limited, Registered in England & Wales, Company number 15236090
4 Bouverie Street, London, EC4Y 8AX
Copyright © Euromoney Limited 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Treasury

Will card schemes suffer from instant payments?

Banks and regulators are keen to use instant payments to reduce the influence of Visa and Mastercard on the European payments industry – but replacing these two dominant players will be far from easy.

Visa-Mastercard-Reuters-960.jpg
Photo: Reuters

Decreasing Europe’s reliance on foreign payment schemes has been a key objective of regional legislators for some time. Indeed, the sovereignty of Europe’s payment systems – namely its reliance on international card schemes and a small number of non-European payment solutions and technologies – is one of the core issues in the European Central Bank’s retail payment strategy.

“A solution lies in combining instant payments with open banking to deliver a home-grown, pan-European payment method that poses a genuine threat to the card schemes,” says Todd Clyde, chief executive of Token.io. “The EU’s Instant Payments Regulation will be a vital driving force.”

Challenging dominance

A recent survey of 200 senior payment professionals at European banks published by payments modernization specialist RedCompass Labs saw more than two-thirds (69%) of respondents predict a rapid uplift in the use of instant payments as an e-commerce or point-of-sales payment method by the end of next year.

“Combining instant payments with open banking will provide consumers with a better user experience than traditional bank transfers alone, driving adoption and challenging the dominance of Visa and Mastercard,” predicts Angela Hull, vice-president of global payments partnerships at Ppro.


Gift this article