SEPA Instant adoption in Europe
Build it and they will come
The EU Instant Payments Regulation’s (IPR) SEPA Instant Credit Transfer (SCT Inst) mandate is a watershed moment for Europe’s payments market.
This research report, produced by Celent and commissioned by ClearBank in collaboration with Plaid, examines the readiness of banks, electronic money institutions (EMIs) and payment institutions (PIs).
It also considers where the market is headed, the factors and developments that could influence real-time payment growth, and how firms are preparing to capture the SEPA Instant opportunity.
Key insights
19% of all euro payments will be via SEPA Instant by 2035
By 2035, most credit transfers are expected to be instant and, as a result, it will become the second most used non-cash payment type, behind cards. Every institution expects that at least two-thirds of SCT volumes will be converted to SEPA Instant. The tipping point is sooner, with SEPA Instant volumes overtaking SEPA Credit by 2030 and accelerating, capturing a greater share of a growing payments market. Instant payments will be deeply ingrained in European commerce, effectively the “new normal” for electronic payments.
74% see SEPA Instant having a positive impact
The industry’s attitude towards SEPA Instant is overwhelmingly positive. Banks, EMIs and PIs believe it will have a positive impact on the industry overall (73% agreeing), benefit their customers (69%) and their institutions (65%). When analysing these results by market participant, retail banks are overwhelmingly positive about the effects on their businesses, their customers, and the eurozone overall, compared with corporate banks, EMIs, and PIs.
79% of EMIs and PIs would change banking partner
Banks are under pressure to deliver real-time services to their customers. While 59% of PIs and 46% of EMIs intend to continue with indirect access for the foreseeable future, banks serving EMIs and PIs today should not become complacent. Many EMIs and PIs would consider changing banking partners if services don’t meet their requirements, while 29% of EMIs and 18% of PIs plan to apply for direct access within the next 1-2 years.
56% of banks on track for 2027 SEPA mandates
All 60 bank respondents stated that they were already fully compliant with the January 2025 requirements. Over half (55%) are already compliant with the July 2027 mandates. The rest (95-97%) believe they will be ready by then. This is in stark contrast to EMIs and PIs, with 20% expecting to miss the 2027 deadline by 3-6 months.
“The move to instant payments in Europe is accelerating a broader transformation towards real-time, intelligent banking. The real winners will be firms that go beyond compliance and innovate on top of instant payments, creating seamless, secure, and intelligent payment experiences, where money moves as fast as information, and banking truly happens in an instant.”
“Against a backdrop of regulatory momentum mandating instant payments, real-time settlement is becoming the default rather than the exception. This convergence is catapulting open banking into open finance, unlocking new use cases across payments, lending, and treasury. Institutions that invest now in high-quality data access and resilient instant-payment infrastructure will be best positioned to capture the next wave of value.”
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What happens next for real-time payments in the eurozone?
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