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 :
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 :