BNP Paribas Cash Management & Trade Solutions’ Post

Despite ambitious implementation deadlines, ~30% of payment service providers in the euro area have still not joined the SEPA instant credit transfer scheme. What does this mean for the financial industry? Our session on 27 June departs with an overview on the adopted #Instant #Payment #Regulation, its focus areas and timelines for implementation. 👉 After exploring the regulatory requirements, we will shed light on the challenges for #financial #institutions and payment service providers that come with the mandatory implementation of #InstantPayments within the next 9-18 months. 👉 We will explore the chances that come with mandatory provision of Instant Payments across the #EEA both for financial institutions and the wider payments #ecosystem as well as the action that need to be taken. 👉 What does this mean for the #FinancialServicesIndustry and payment service providers in particular? 📣 Be part at our next banking webcast on 27 June 2024 and register now!

SCT Inst scheme will become mandatory. Learn about the implementation miletones in this new video.

The payment landscape of European payment systems is facing a significant transformation. Since the introduction of SEPA Instant Credit Transfers (SCT Inst) in 2017, it has been possible to execute transactions within the EU almost in real-time. Despite this revolutionary approach, the spread of real-time transfers has remained limited due to the lack of a mandatory implementation requirement by legislators – at least until now. Read everything about it in our latest blog post from my colleagues Maximilian Harmsen, Robert N. and Artjom Bondarev. #payments #paymentsolutions #pwc https://lnkd.in/e9xdVwU9

An exciting couple of days with my colleague Anna Kelly in Brussels at the European Payments Council (EPC), discussing plans to take the SPAA scheme live. Two parting thoughts: 1. A serious push is needed to make banks aware that through SPAA they can get paid for #openbanking APIs. Investments in #psd2 can be leveraged here. 2. The demand from merchants for Dynamic Recurring Payments (aka #VRP in the UK) is huge due to the wide range of use cases it can support. SPAA will be the bridge between PSD2’s open banking and the wider open finance framework under #FIDA.

The Milestones for the implementation of the mandatory SEPA Instant Payment scheme! 🕒 As of March 19, 2024, the regulation on instant payments was officially published in the Official Journal of the European Union, setting in motion a new timeline for payment service providers (PSPs) within the Eurozone. These providers now have 9 months to accept incoming SEPA Instant Payments and 18 months for sending outgoing payments, effective from the publication date. By January 9, 2025, PSPs must be equipped to receive instant payments in euros, and by October 9, 2025, they will also need to manage outgoing instant payments. SEPA countries outside the euro zone are granted an additional two-year period to comply, with their respective deadlines set for January 9, 2027, for incoming and October 9, 2027, for outgoing payments. These changes mark significant steps towards faster and more efficient financial transactions across Europe. They reflect the ongoing efforts to enhance the financial infrastructure, ensuring a seamless and secure transfer process that benefits both consumers and businesses alike. How will these changes affect business operations or financial practices? Do you think institutions will be prepared in time for these changes? #SEPA #InstantPayments #FinancialRegulations #Eurozone #PaymentServiceProviders #Finance #Banking 

Lately, I have been dissecting EBA reports to explore the regulator's understanding of AML/CFT risks relating to virtual IBANs. An accurate understanding of legitimate use cases is required to comprehend vulnerabilities for AML/CFT. EBA report has elaborated on the use cases in detail. Thanks a lot Jekaterina Govina for sharing them in the form of infographic making them more easy to understand.

SEPA Instant Payment Revolution: Say goodbye to waiting days for transactions to clear. With SEPA Instant Payments, funds transfer within seconds, breaking down borders and time zones. Embracing this revolution means embracing speed, reliability, and innovation in financial transactions. Are you ready to thrive in the fast-paced digital economy? #SEPA #InstantPayments #financialinnovation https://lnkd.in/d-Q6g4JN

💡 The Swiss National Bank (SNB) and SIX Interbank Clearing Ltd (SIC Ltd) have jointly introduced the new SIC5 platform. This enables financial institutions to process #instant #payments in central bank money. In the future, the SIC-IP service should also be made available to interest providers of payment solutions (payment schemes) for their account-to-account (A2A) payments. Therefore, a rough concept for an #InstantPaymentBridge (IPB) was introduced, which led to a public market consultation. 📑 The #partners of the OpenBankingProject.ch endorse the efforts of SNB and SIX to make the infrastructure accessible to other market participants. OBP has therefore submitted the following statement below. Furthermore, thanks to an instant payment bridge, payment schemes that enable A2A payments directly in #ECommerce or at the #PointOfSale would also be realizable better. With the usage of irrevocable payment promises, instant payments could be also used for such A2A payments, although IP have been considered inadequate due to the 10-second time period so far. We are excited to see what other innovations will be launched on the market as a result of this IPB. 🧠 The OpenBankingProject.ch is eager to contribute and support the development of an instant payment bridge. #payments #innovation #A2A #OpenBanking #OpenFinance

Money in the bank within 10 seconds! Sepa Instant is coming. On or before January 9 2025, all EU banks have to credit incoming transfers within 10 seconds. At the moment customer bank transfers can take several hours to arrive, through no fault of the sending party. This will be a game changer for our industry. I also think it will reduce the reliance on credit card payments (noting the high costs of taking cards). Another benefit of European Union membership/citizenship. #sepa #sepainstant #eu #europeanunion

✨ Examining EU Instant Payment Regulation: highlights the impacts for banks!  Published in February of this year, the European Commission's new regulation on 'Instant payments' (IPR) want to set to ensure instant payments are accessible to all, making immediate transfers seamless and straightforward. 🔗 What are the Key aspects of the SCT INST? Instant payments via SCT INST are processed in real-time (within 10 seconds), available 24/7, and are irrevocable once entered into the SEPA scheme. The European Commission aims to equalize fees between Instant SCT and regular SCT, despite current institutional differences. 💡 What actions must banks & processors undertake? Updating technology for compliance and restructuring risk management strategies are essential for implementing an instant payments system. Additionally, ensuring regulatory adherence, effective customer communication, strategic business reviews, and operational model assessments are crucial. ⏳ When will IPR Come Into Effect? The new regulation mandates that by January 2025, banks must perform daily sanction screenings and receive SEPA Instant Credit Transfers (SCT Inst) in euro, 24/7, from eurozone banks, with the capability to send SCT Inst by October 2025. By April 2027, banks must receive and send SCT Inst in euro, 24/7, from eurozone-based EMIs and PIs, and also receive from non-eurozone EMIs and PIs. For a deeper dive into IPR and its implications for the banking industry, check out our latest insight here: https://lnkd.in/dDSWHKqs #FinancialInnovation #EURegulation #FinancialServices #InstantPayments #SiaPartners