PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Checking in on the Progress of Real-Time Payments in Europe

Sarah Grotta by Sarah Grotta
January 3, 2022
in Analysts Coverage, Real Time Payments
0
Checking in on the Progress of Real-Time Payments in Europe

Checking in on the Progress of Real-Time Payments in Europe

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

As those in the U.S. hear so often, Europe is far more advanced in the development of a modern payments infrastructure that better meets the needs and opportunities of a digital marketplace. While the U.S. market is very different, it is beneficial to note how new payment types and form factors are progressing in other countries, particularly those deemed more advanced, to look for trends, issues, and areas of success that bear repeating or should be avoided if possible. An article posted to Market Research Telecast looks at the state of real-time payments, specifically “SCT Inst fast transfers,” (SEPA Instant Credit Transfers) that have been operational since November 2017. The article finds that in Germany, consumers are selective in how they take advantage of real-time account to account transfers, suggesting that real-time payments is more of a niche product. Here’s more from the article that outlines some of the reasons why, focusing on fees for real-time transfers and differences in the way they have been implemented:

Time is money – but real-time payments are still the exception in Germany. “From our point of view, instant payment has not yet arrived in people’s everyday lives. Banks tend to place it as a niche product and are therefore still a long way off from the political will and the requirements of retailers to be considered the “New Normal,”” summarized Ulrich Binnebößel, Payment transaction expert at the German Trade Association (HDE).

In Europe, the “SCT Inst” called “SCT Inst” fast transfers have been possible since November 21, 2017. On the same day, Hypovereinsbank (HVB), part of the Italian Unicredit Group, tested the system; since November 27, 2017, HVB customers have been able to order transfers in real time via online banking. In mid-July 2018, the savings banks followed suit, and Deutsche Bank and Commerzbank as well as various cooperative banks also offer the service.

According to the Deutsche Kreditwirtschaft (DK), “real-time transfers have established themselves as a new standard alongside conventional transfers”. Nevertheless, “the switch to real-time transfers (…) does not make sense for all applications for customers,” said the umbrella organization of the five major banking associations in Germany. “Depending on their needs, customers clearly differentiate between which transactions they are using which transfer method.”

We can hear from the industry: Most private customers only resort to real-time transfers, which are usually chargeable, in exceptional cases. For companies, collective transfers via instant payment are now technically possible, but the company’s IT systems must be upgraded accordingly, for example in order to process pay slips for the workforce in this way.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

Tags: A2Aaccount to accountEuropeGermanyReal Time PaymentsReal-time payments
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: