EU banks face tight deadline for instant payments

Many EU banks are struggling to meet the January 2025 deadline for offering instant payment services, according to a survey by RedCompass Labs.

• A third of EU banks currently lack this service, and over half (58%) of them find the deadline unrealistic.
• Despite challenges, most banks (77%) see the benefits outweighing the costs, and over half (55%) plan to make instant payments the default option.

The survey, titled “So You Think You’re Ready for SEPA Instant?”, also highlights potential underestimation of processing needs.

• Most banks aim to handle 101-300 payments per second, but bulk files can contain hundreds of thousands. RedCompass recommends a minimum capacity of 1,000 per second.
• To comply with the new rules, 76% of banks expect increased IT budgets, averaging €1-€3 million each.

“The EU’s regulation marks a turning point for instant payments in Europe,” said RedCompass CEO Tom Hewson. “Our findings reveal concerns about tight deadlines and potential underestimation of scaling and investment needs.”

Hewson expects banks to explore alternative solutions that avoid core system changes.

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