Instant Payments : Real time payments around the clock

Payment on the beneficiary account within seconds.

Offer first class services with Instant Payments

Among the current initiatives for the digitalization of the payments business, SEPA Instant Payments is one promising radical changes. The end-end payment process – from initiation to confirmation – is designed to be made in an "instant", i.e. in real time. According to the timelines set out by the Euro Retail Payments Board (ERPB), SEPA Instant Payments have been launched in November 2017.

Even though there is no obligation for banks and financial services providers to take part in the Instant Payments program, many larger banks are already designing and building solutions. The demand for real-time payments processing is growing constantly, not least because the instant execution of online or mobile orders is already part of daily life for private banking users.

For SEPA Instant Payments, a clear set of rules has been defined. To meet these criteria, most banks have to make a radical restructuring of their workflows and operations :

  • Credit on an account of the payment beneficiary should be received within 10 seconds of the order being received by the payment service provider.
  • Transactions have to be processed directly (not as part of a batch)
  • Operations have to run 24/7 for 365 days per year
  • Banks must connect to a new interbank clearing system, dedicated for Instant Payments

Any bank which is able to meet these demands quickly and provide its clients with a working solution is well positioned to gain a competitive advantage.

To process Instant Payments as stipulated, banks have to modernise their systems to ensure that payments and confirmation messages are verified and processed in real-time. Omikron has a suite of components available to meet the requirements :

Characteristics and Options of the Omikron Solution

  • The MultiCash Communication Platform can verify and process transactions in real time. Delivery to the bank’s accounting system can then be made in real time using the Online Host Connector. Additionally, receiving creating and processing confirmation messages is be supported on all levels.
  • Instant Payment orders can be set-up and generated in Omikron’s Internet Banking solution MultiCash@SmartOffice, as well as in the Electronic Banking product MultiCash. An add-on for the SEPA-Module is all that is needed. For feedback on the status of the transactions, confirmation messages can be received and processed.
  • In addition, an Alerts & Notifications module for the Communication Platform allows the bank to send real time messages or alerts about Instant Payments.