With the arrival of new technologies and e-commerce innovations, consumers expect ever easier and faster services in this digital and online world. Changes and improvements in areas such as banking, shopping, and online processes are taking place so fast, that services like Instant Payments.
In today’s post will explain what is exactly SEPA Instant Payments and what it really means for users, especially for those who are accustomed to paying everything through their mobile.
What’s SEPA Inst Payments?
If you Google the term of SEPA Instant Payments you’ll end up with this definition:
“electronic retail payment solutions available 24/7/365 and resulting in the immediate or close-to-immediate interbank clearing of the transaction and crediting of the payee’s account with confirmation to the payer (within seconds of payment initiation). This is irrespective of the underlying payment instrument used (credit transfer, direct debit or payment card) and of the underlying arrangements for clearing (whether bilateral interbank clearing or clearing via infrastructures) and settlement (e.g. with guarantees or in real time) that make this possible”.
The intention behind this new service is to provide the interbank system with the capacity to process the new pan-European instrument by making it easier for banks to develop new attractive and efficient digital services that enhance the value of the current account and strengthen their competitive position.
What are the benefits for customers and suppliers?
With the spread of smartphones, customers are able to make internet purchases anywhere and at any time, meaning that, they also expect to be able to make payments even during weekends, holidays and non-working hours.
On the other hand, suppliers are looking for a way of being paid as soon as they sell their goods or services to their clients, and Inst scheme is able to fulfill these expectations.
So, what benefits do customers have with this new scheme? The more noticeable is the fact that it will allow the transfer of money in Europe (up to 15,000€) between accounts in less than 10 seconds, 24/7/365 and across borders in any of 34 Sepa countries.
Why now?
The need for a pan-European instant payment scheme is not new to us, in fact, between 2014 and 2016, several European countries planned and tried to implement their own solutions in order to improve rapid payments.
The problem, unfortunately, is that these national schemes would have stopped at national borders, and would have slowed the harmonization of payments in Europe.
But it wasn’t until the end of this year (November 2017) that the new Inst scheme became operational. The service is only available at the moment for PSPs in these countries: Austria, Estonia, Germany, Italy, Latvia, Lithuania, the Netherlands, and Spain.
The rest of the European members such as Finland, Malta, Portugal, Belgium, and Sweden will have to wait until 2018 and 2019 to get onboard.
Meanwhile, if you need any assistance or further information about how instant payments would benefit your business, let us know so we can contact you and show you the right business solutions and options available.
