ACI Readies European Banks and Merchants for Instant Payments
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Banks across
Europe are working to comply with the proposed EC Mandate on Instant Payments, with just 12 months to comply from when the Mandate is confirmed - ACI enables European banks to connect to their domestic instant payments scheme or to pan-European schemes TIPS and RT1 through its market-leading ACI Enterprise Payments Platform
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ACI Instant Pay just launched in
Europe , enabling merchants to accept online, mobile and in-store payments instantly - European countries are forecasted to see substantial growth in instant payments adoption by 2027, according to ACI’s 2023 Prime Time for Real-Time report
With a choice of flexible deployment options, ACI enables financial institutions s across
In addition, ACI recently launched its ACI Instant Pay solution in
Banks across
“The European commission clearly sees instant payments as a path to unlock economic growth and drive financial inclusion across its member states. European banks must act now to comply with the EC Mandate,” said
“Instant payments will help to secure the competitiveness of banks, financial services providers and merchants. They remove payments friction, contribute to greater liquidity and ultimately improve the customer experience.”
“Banks should evaluate whether they are truly maximizing existing instant payment rails in their market. Ultimately, the extent to which they make instant payments part of their offering is a strategic decision. It seems increasingly clear, however, that limiting their commitment to the minimum also means limiting their potential share of the future payments market,” Warsop concluded.
Prime-Time for Real-Time 2023 — Europe Lags Asia and
ACI’s 2023 Prime Time for Real-Time report indicates that Europe’s economies are largely playing catch-up as widespread adoption drives global instant payments growth. According to the report, 195.0B instant payment transactions were recorded globally in 2022, a year-over-year growth of 63.2%.
Although considerable growth is expected across
While
However, the report also shows that Europeans are ready for change. Mobile wallets are increasingly popular, with 41% of consumers in
“These figures should serve as a wake-up call for all stakeholders in the European payments ecosystem,” said
Spotlight
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France recorded 202M instant payment transactions in 2022, expected to grow to 1.4B by 2027, a CAGR of 47.8%. -
France adopted SCT Inst in 2018, implementing instant payments into its domestic network. SCT Inst was developed by the EPC with the aim to create an instant payments network within the eurozone — though so far, the development towards a truly pan-regional, instant payments network within the EU has been slow. - Instant payments only represented a 0.5% share of total payments volume in 2022.
- The EC Instant Payments Mandate and the EU’s invoicing regulations are expected to galvanize the domestic market.
Spotlight
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Italy recorded 364M instant payment transactions in 2022, expected to grow to 787M by 2027, a CAGR of 16.7%. -
Italy is among the few nations that adopted the pan-European SCT Inst scheme at an early stage inNovember 2017 . Despite the head start and wide participation from banks and payment service providers (287 participants as ofNovember 2022 ), the growth in adoption and usage of instant payments has been slow due to high preference for cash and the higher fees initially requested by financial institutions. - In 2022, instant payments accounted for just a 1.4% share of total payments transaction volume, while paper-based transactions had a 71.5% share. Instant payments’ share is projected to rise to 8.2% by 2027, and further acceleration in adoption is expected once the EC Mandate takes effect.
Spotlight
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Germany recorded 1.1B instant payment transactions in 2022, expected to grow to 2.7B by 2027, a CAGR of 18.9%. -
Germany adopted the pan-European SCT Inst payments scheme in 2017, gaining access to the European instant payments scheme. Today, SCT Inst provides instant payment transfers not only among participating financial institutions inGermany , but also with any participating financial institution in any other country in the eurozone. As in all SCT Inst markets, the EC Mandate could kick-start a major change. -
Despite this regional link, instant payments represent only a small part of total payments volume and spending in
Germany . In 2022, instant payments were 2.5% of total payments volume, while other forms of electronic payments represented 66.4%, and paper-based payments represented 31.1%. However, the use of cash is expected to decline by 10% in terms of total market share by 2027.
Spotlight
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Spain recorded 364M instant payment transactions in 2022, expected to grow to 2.4B by 2027, a CAGR of 30.4%. -
Spain launched its domestic instant payments system Bizum inOctober 2016 and later adopted SCT Inst inNovember 2017 . The adoption of instant payments has been on a gradual rise, supported by increasing participation from banks and financial institutions. While Bizum had 32 participants, SCT Inst was adopted by more than 90 banks inSpain as ofNovember 2022 . - The share of instant payments of the total volume of electronic payments will increase from 2.6% in 2022 to 8.2% by 2027.
ACI’s Inside Real-Time
This year, we are excited to launch Inside Real-Time — a new, multi-channel media platform — as the definitive guide and go-to source for the world’s instant payment stories, including exclusive content exploring the latest developments and opportunities about how instant payments are empowering consumers, merchants, businesses and banks. ACI’s Prime Time for Real-Time report is the foundation of this new platform.
*Note to Editors: Instant or real-time payments are credit transfers that make funds available in a payee’s account within 10 seconds of a payment order being made. While the term “instant payments” is used in
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