How to unlock the potential for instant payments?
Ongoing digitalisation has amplified the importance of electronic payments for the functioning of the European economy. In response, the European Commission has stepped-up its ambitions to create an integrated payment system and increasing the autonomy of existing means of payments.
Real time electronic payments, also known as instant payments, play a pivotal role in creating the desired homegrown pan-European integrated payment system for both online and point-of-sale payments. The European Commission is supported by various other public and private organisations, including the European Central Bank (ECB) and the various European banks collected in the European Payments Initiative (EPI).
Developing the full potential of instant payments remains very challenging. Ensuring 24/7 availability of payments requires an important investment in infrastructure and connectivity as well as cooperation between payment service providers that might be operating with different systems. Equally, guaranteeing consumer protection to the same level than other forms of payments is fundamental as instant payments must be secure to earn the trust of citizens.
Instant payments only accounted for about 7% of credit transfers in the first half of 2020. Both the European Commission and ECB have since taken several measures to reach full acceptance of instant payments by the end of this year. The European Commission will present a new proposal on instant payments in the second part of the year.
During this CEPS-ECRI conference, policymakers, national authorities and industry representatives will provide their insights on the application of instant payments in various EU Member States and discuss the policy challenges and interventions to develop the instant payments market.
Introduction by Karel Lannoo, CEPS and ECRI
PRESENTATIONS: EXPERIENCES WITH INSTANT PAYMENTS
The application and penetration of instant payments varies largely across Member States. This session will focus on instant payment solutions with a large penetration, and their success factors and limitations.
Somya Patnaik, ACI Worldwide
Fernando Rodríguez Ferrer, Bizum
Lajos Bartha, Central Bank of Hungary
DISCUSSION: REGULATORY CHALLENGES AND SOLUTIONS
Regulators face many challenges in promoting widespread establishment and use of instant payments. This session will discuss the main challenges (fragmentation, interoperability, consumer protection, level-playing field, etc.) as well as potential solutions.
Steve Ryan, European Commission
Martina Weimert, EPI Company
Hays Littlejohn, EBA Clearing
Gerhard Huemer, SME United
Moderated by Willem Pieter de Groen, CEPS and ECRI
*This event is supported by a grant from the Central Bank of Hungary (Magyar Nemzeti Bank)
