I wonder will the SEPA instant work like this.
replies(1):
I wonder will the SEPA instant work like this.
Yes, I believe that is the goal: https://www.ecb.europa.eu/paym/integration/retail/instant_pa...
But I think adoption is slow because everyone in the EU already has credit cards and fees are not paid by consumers.
Fees are always paid by consumers in one way or another...
That said the EEA capped interchange with the explicit goal of making these fees painless to business owners, i.e. similar to the actual cost of handling cash, and we have PSPs charging as little as 0.5~0.7%.
While adoption is indeed slower than in developing countries since people are used to card payments (rather debit than credit by the way), the popularity of mobile wallets such as Swish, Vipps, BLIK, ... is actually pretty significant in a good number of countries, and at the same time, an increasing portion of the population uses Apple/Google/Samsung/... Pay and doesn't care about the physical card anymore. Given that the EU has forced Apple to open up its NFC payment feature, we can perfectly imagine a pan-European federated payment scheme take off in the near future, using EPI/Wero in the Eurozone and interoperable local players outside.
In the first half of 2024 SEPA Instant CT accounted for 15% of the total number of credit transfer transactions processed by euro area retail payment systems: https://www.ecb.europa.eu/press/stats/paysec/html/ecb.pis202...
With the harmonisation and almost free nature of ECB TIPS, becoming mandatory for all European payment service providers by the end of 2025, that figure will keep growing: https://www.ecb.europa.eu/press/intro/events/shared/pdf/fs22...