The recently unveiled IPR Compliance Deadlines mandates that all payment service providers (PSPs), E-money Institutions (EMIs) and Payment Institutions (PIs) must provide customers with the facility of instant SEPA credit transfers in euro. This includes both sending and receiving such payments, ensuring they occur in real-time—within 10 seconds of initiation.
The facility must be available all day, every day, throughout the year.
There is some ambiguity on who is in scope for Instant Payment Regulation and what are the applicable key compliance deadlines.
Who is in Scope for IPR?
- Financial Institutions in Scope: Banks, Electronic Money Institutions, and Payment Institutions offering credit transfer services in euros and operating within SEPA should comply with Instant Payment Regulations.
- Savings and cooperative banks in scope: Savings and cooperative banks that offer the service of sending and receiving credit transfers are in scope and must offer the service of sending and receiving instant credit transfer.
- Accounts in Scope: Euro-denominated payment accounts held by consumers, businesses, and public sector entities within SEPA region must implement all mandates as given in IPR. Payment account in this context means an account held in the name of one or more payment service users used for the execution of payment transactions.
What Channels are in Scope for IPR?
The regulation covers all major payment channels, ensuring instant payments are accessible regardless of the medium used:
- Online Banking Platforms: Instant payments must be available for euro-denominated transactions initiated via web-based banking portals.
- Mobile Banking Apps: Banks and PSPs must enable real-time payment functionality within their mobile applications.
- Paper–Based transactions: Paper-based transactions should be processed instantly and as soon as they are introduced in the PSPs internal payment system.
- APIs for Corporate Clients: Bulk payment channels used by businesses for payroll or supplier payments are in scope, unless opted out by non-consumer for verification.
Implementation Timelines
The IPR stipulates phased implementation deadlines to accommodate varying readiness levels among PSPs:
- PSPs in Eurozone Member States:
- Receiving Instant Payments: Required by 9 January 2025.
- Sending Instant Payments: Required by 9 October 2025.
- PSPs in Non-Eurozone Member States:
- Receiving Instant Payments: Required by 9 January 2027.
- Sending Instant Payments: Required by 9 July 2027.
Exception – (until 9 June 2028): PSPs are not required to send instant euro payments from accounts denominated in their local currency if they don’t provide SEPA credit transfers for accounts today.
- EMIs & PIs in Eurozone Member States:
- Receiving Instant Payments: Required by 9 April 2027.
- Sending Instant Payments: Required by 9 April 2027.
- EMIs & PIs in Non-Eurozone Member States:
- Receiving Instant Payments: Required by 9 April 2027.
- Sending Instant Payments: Required by 9 July 2027.
- Verification of Payee for PSPs, EMIs & PIs in Eurozone Member States:
- For all credit transfers: Required by 9 October 2025.
- Verification of Payee for PSPs, EMIs & PIs in Eurozone Member States:
- For all credit transfers: Required by 9 October 2025.
The deadlines are set as per services provided and denomination of accounts provided by PSPs, EMIs & PIs across Eurozone and non-Eurozone member states. The timelines are proportional and leave adequate time for entities to upgrade systems and processes.
The Instant Payment Regulation (IPR) is a big step towards streamlining payment systems across the EU, ensuring faster, safer, and more transparent payments processing.
For banks and PSPs, this is more than just meeting a regulatory requirement—it’s an opportunity to enhance customer trust and operational efficiency while supporting the broader goal of financial inclusion. As the deadlines approach, early preparation and seamless integration of the necessary systems are critical to success.
Ensure your compliance journey is smooth and efficient with TechnoXander’s Verification of Payee (VoP) solution. Whether you’re implementing instant payments for individual customers or bulk transfers for corporate clients, our robust, scalable, and regulatory-compliant VoP platform is here to support you. Contact us today at vop@technoxander.com to start your implementation and stay ahead of the IPR deadlines.
