The European Commission wants to generalize instant payment.
On November 16th, European Commissioner for Financial Services, Mairead McGuinness, delivered a keynote speech at European Payment Institutions Federation Annual Conference. She showed her willingness to accelerate the generalization of instant payment on the Old Continent, where most transactions are now processed within 24 hours.
Offering an overview of the rapidly changing world of payments and its rules, Mairead McGuinness observed that “over the past decade, non-banks have entered the payments market, offering services directly to consumers without the need for a bank licence. These institutions have made a big contribution to shaping the payments market in the European Union, creating a competitive and innovative ecosystem. Of the top ten European unicorns, four are financial services companies, and two of those specialise in payments.”
She stated that “consumers want to be able to shop and pay anywhere, any time, safely and at low cost. They want to send money internationally as easily as at home”. As a consequence, “safe, instant, frictionless payments should be the norm in Europe. […] Instant payments can increase competition and diversify the payment options offered to consumers. Given the current level of market concentration, this is key”.
So, “how do we make instant payments the norm in Europe?”, asked the Commissioner. Mairead McGuinness identified four major roadblocks in the way of progress on instant payments:
–“ First, we need to reach critical mass”;
–“ Second, we need to make sure consumers are protected”;
– “The third issue flagged is pricing”;
–“Finally, we need to look at sanctions screening”.
She confirmed that the European Commission will deliver an initiative on instant payments in the first half of 2022. The plan is to foster the full uptake of instant payments in the EU.
The full speech is available HERE
Publié le 22 novembre 2021