In October 2022 the European Commission (EC) announced a legislative proposal to make instant payments in euros available to all individuals with a bank account in the EU/EEA. In short, the EC proposal contains four major initiatives:
- All Payment Service Providers (PSPs) that already offer credit transfers in euros should also offer instant (SCT Inst) payments.
- End user fees for instant payments should be equal to or less than those of standard credit transfers (SCTs).
- All PSPs should provide Confirmation-of-Payee (CoP)-like service, i.e., senders should be made aware of the recipient of a transfer.
- Concerning sanction screenings, all PSPs should conduct daily checks of their clients against EU sanction lists rather than prior to each payment.
Read the full article on the EU payments mandate
First published on Finextra, February 16, 2022
Leo Lipis
Leo is the founder of Lipis Advisors and has over 25 years of experience in payment systems consulting and research on all six continents. Prior to founding Lipis Advisors in 2007, he held positions in payments strategy and analysis with commercial banks, clearing houses, and central banks. Leo works chiefly in transaction banking, payment system strategy & design, and treasury management.