Instant Payments

Instant Payments in the Banking System: From Obligation to Opportunity

Since January 2025, banks in the Eurozone must be able to receive instant payments. Starting October 9, 2025, they will also be required to send them - around the clock. The major challenge: processing payments within 10 seconds, across all channels, at no additional cost. We not only provide consulting but also support you in implementing the demanding technical, professional, and organizational requirements.

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Instant Payments: Background and Future

Regulatory Framework and Technical Requirements for Instant Payments

Since 2018, instant payments have been available on the market through the TIPS (TARGET Instant Payment Settlement) service of the European Central Bank. Additionally, the RT1 service by EBA Clearing has also been available. However, the volume of instant payments has remained low. For this reason, the European Commission adopted an Instant Payments mandate in February 2024: policymakers and regulators aim to establish instant payments as the standard for mass payments.

The exchange of instant payments requires constant real-time availability. All systems must be continuously operational to ensure the processing of payments within 10 seconds. An SCTInst transaction must not cost more than a standard SCT transfer.

In addition to the technical transition, the introduction of Verification of Payee (IBAN-name matching), bulk payment processing, and daily sanctions screening present further challenges for institutions. Previously, the transaction limit was €100,000. However, under the new regulations, banks must adapt their payment and liquidity management processes to handle payments of significantly higher amounts within seconds. Furthermore, instant payments are now being recognized with increasing interest as a viable use case in corporate treasury.

Future Developments and Opportunities through Instant Payments

An additional push to enhance the attractiveness of instant payments is expected from the Request to Pay service. While it is not inherently tied to instant payments, it can significantly simplify their initiation. However, Request to Pay also needs to be implemented on the banking side, which first requires in-depth analysis and subsequent adjustments to processes in the areas of payment transactions and information delivery.

A successful implementation is not just a “must” - it also provides competitive advantages and significantly improves payment process efficiency as well as customer service. We support financial institutions in the transition to cost-neutral instant payments, from initial consulting through to go-live. Throughout the process, we also consider the broader implications - such as liquidity management and the timely provision of information about incoming and outgoing instant payment transactions for customers.

Answers to Questions about Instant Payments

How will the share of instant payments (SCTInst) develop?

In the second quarter of 2024, the share of SCTInst in SCT transactions was just under 19%. With the implementation of the Instant Payments Regulation, we expect a significant increase in SCTInst volume - in the medium term, we anticipate a share of 40–50%. In our view, instant payments will become the “new normal” and will gradually replace traditional credit transfers in the medium to long term.

Which market infrastructures/services are available?

TIPS by the European Central Bank – see here on the ECB website (English) and here on the Bundesbank website (German).
RT1 by EBA Clearing
Several market infrastructures outside the euro area (non-EUR) have also already transitioned to instant payments – and there are various efforts underway to create interoperable interfaces, with the goal of enabling global instant payments in the future.

How does Verification of Payee (VoP) work?

As part of the Instant Payments Regulation, banks are required to introduce a so-called Verification of Payee (formerly known as IBAN-name check). The target date is the same as the deadline for active Instant Payments reachability, i.e. October 9, 2025. This serves fraud prevention and aims to build trust and user satisfaction in SEPA credit transfers.

Specifically, this refers to the comparison between the payee's name and the corresponding IBAN (or IBAN and ID) when entering a payment. For this, a service must be available that provides the user with immediate feedback on the match of the data after entry (match, close match, no match).

There are still particularities in the Verification of Payee process when handling bulk payments, especially regarding when the process starts in relation to the 10-second processing requirement. The European Payments Council has already published the rulebook and matching recommendations for this.

Helpful Publications and Specifications

Instant Payments Regulation (European Commission)
Instant Payments Regulation Clarifications der öffentlichen Konsultation (European Commission)
Rulebook Verification of Payee (European Payments Council)
Recommended Matching Rules for Verification of Payee (European Payments Council)

Our services - your advantage: Turning Requirements into Advantages

Instant Payment Process

We capture, analyze, and validate your requirements, develop robust data models, ensure 24/7 availability, implement IBAN-name checks, automate sanctions screening, and integrate real-time payment processing efficiently into your existing systems.

Boosting Process Efficiency

We ensure that liquidity-relevant information is available in a timely manner, analyze and consolidate data for liquidity management, and improve your data quality and transparency. This enables you to generate accurate intraday forecasts while also meeting regulatory requirements such as reporting obligations.

Real-Time Data

Modern, efficient cash management relies on the analysis of real-time payment data. We ensure the highest data quality, transparency in real-time payment flow monitoring, and support you in meeting reporting requirements - especially in the context of sanctions screening.

Payment Infrastructure

We establish automated processes for handling instant payments, implement central monitoring cockpits for real-time oversight, and optimize test management and automation to ensure stable and high-performing operations.

Are you interested?

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Carsten Gross

Product Manager Payments & Liquidity Management

+49 6122 9176 0 Call Message