EU Banks Struggle with Instant Payments Adoption

Research reveals that a significant portion of EU banks currently lack instant payments services, with many feeling deterred by looming deadlines, as per recent findings.

A survey conducted by RedCompass Labs among 200 payment professionals at EU banks highlights that 58% of non-offering banks perceive the deadlines as overly ambitious, with a third expressing uncertainty about meeting them.

Despite reservations, the majority (77%) recognize the benefits of instant payments outweighing costs, and more than half (55%) plan to adopt instant payments as their default option for clients.

Concerns extend to underestimating processing demands, with banks aiming to handle 101-300 payments per second while facing files containing hundreds of thousands of payments. RedCompass suggests banks aim for at least 1,000 payments per second.

Most surveyed banks (76%) anticipate increased IT budgets to comply with new SEPA rules, with an average increase of €1-€3 million per bank.

RedCompass Labs CEO Tom Hewson remarked, “The EU’s new regulation marks the arrival of the instant payments revolution in Europe,” noting concerns over deadline proximity and scaling requirements.

Hewson added, “With no one-size-fits-all solution, banks are likely to explore alternative approaches that avoid core banking system changes.”

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.