Instant payments in Europe

Domestic instant payment schemes are already live in Denmark, Norway Poland, Sweden and UK – each with its own rules, message formats and currency.

At a pan-European level SEPA Instant Credit Transfer (SCT Inst) is a scheme designed for euro transactions, based on the existing SCT scheme and the ISO 20022 message standard, that offers 24/7/365 availability, ensures funds are available to the beneficiary within 10 seconds and, at least initially, allows a maximum transaction amount of €15,000.

Though not a mandatory scheme for banks, with 34 participating countries, there is a potential scope for SCT Inst to reach out 500 million users – so the impact on the European payments landscape will be significant – and the pace is now starting to pick up with the European Payments Council SCT Inst scheme rulebook coming into force in November 2017.

Clearing and Settlement Mechanisms (CSMs) are competing in offering services based on the SEPA payment schemes. To date seven organizations have agreed to offer messaging services to CSMs that support full compliance with the SCT Inst scheme and one additional organization has disclosed its intent.

In addition, at a pan-European level, the TARGET Instant Payments Settlement service (TIPS) is being established by the European Central Bank to provide instant payments settlement services, to PSPs and ACHs which have access to TARGET2, focused on the euro, but also capable of settling in other currencies. It is based on the same message formats and aligned with SCT Inst.

In an environment in which there remain a number of unknowns, and with the need to connect to multiple CSMs, it is important to select a partner that can cover all possibilities.

Dovetail has solutions covering all European instant payment clearing and settlement services and is one of the listed frontrunner service providers of the EBA Clearing instant payment service (scheduled to go live in November 2017).

Our wide range of instant payment processing and connectivity solutions get you fast to market with best in class solutions and minimal risk – and, all being based on our single Dovetail Transaction Architecture, offer an unsurpassed level of futureproofing.

 Dovetail powers the first
pan-European instant payment testing

The client
Intesa Sanpaolo, Italy’s largest retail bank and one of Europe’s leading banks.

The requirement
Intesa Sanpaolo, as one of the 40 financial institutions committed to support the EBA Clearing’s pan-European instant payment platform, wanted to be among the first to offer their retail and corporate customers an instant payments service on a pan-European basis.

The Dovetail solution
In 2012 Intesa Sanpaolo selected the Dovetail Payment Solution, as part of their payments transformation strategy, to provide a global payment platform, enabling the replacement of disparate legacy systems and the development of new market opportunities.

In 2016 the bank extended the market-leading benefits provided by this platform by selecting the Dovetail Smart Gateway Solution to connect to the new EBA SCT Inst clearing. With this approach the bank was able to become, in April 2017, the first to complete SCT Inst pilot testing and has scheduled an instant payments launch for late 2017, as a fully integrated part of their payments offerings.

Contact us to learn more about our instant payment solutions

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Dovetail Smart Gateway Solution

From a progressive instant payment solution…

  • Tactical. Fast to market
  • Minimize disruption to current setup
  • Minimize upfront investment
  • 24X7X365 payment processing
  • Based on Dovetail Transaction Architecture so easily extendable to support progressive modernization

…to a full payments transformation

  • Full rich payment hub capabilities
  • Longer term strategic initiative to modernize complete payment infrastructure
  • Based on Dovetail Transaction Architecture

Dovetail Payment Solution