Ireland’s three largest banks are once again joining forces to develop a rival instant payments app to counter Revolut. The new service, Zippay, will launch early next year and be available to the banks’ five million eligible customers.
AIB, Bank of Ireland, and PTSB are backing the initiative, and other financial institutions—such as credit unions—are being encouraged to join the system as well.
Zippay will allow customers to send, request, and split payments of up to €1,000 per day using their contacts’ mobile numbers. The underlying infrastructure will be developed by Italian payment technology provider Nexi.
Skirting Regulatory Issues
Customers will not need to download a new app to use the service. By integrating it into the banks’ existing apps, the project avoids the regulatory complications that scuttled the previous attempt.
In 2020, the same three banks, together with KBC Bank Ireland, launched a project called Synch to develop a standalone payments app, Yippay. That effort was abandoned in 2023 after KBC Bank Ireland’s closure and additional requirements from the Irish Central Bank, which would have delayed the rollout by at least a year. By relying on the banks’ existing apps, Zippay will not require new approvals.
The initiative mirrors the evolution of payment apps in the U.S. After Venmo’s launch and subsequent acquisition by PayPal, seven major U.S. banks collaborated to create Zelle. The three main Irish banks now hope to replicate that model’s success.
Revolut’s Ambitious Plans
In Ireland, the banks’ fintech competitor is Revolut, which has more than 10 million customers in the UK alone and operates in over 40 countries. It holds a significant share of the local payments market, but that hasn’t been enough to satisfy its ambitions.
Revolut was granted a banking license last year, yet it still hasn’t received approval to operate as a full-fledged financial institution. It’s limited to holding £50,000 in total customer deposits and operates as an e-money entity rather than a bank. This means the fintech’s UK customers aren’t protected by the government’s Financial Services Compensation Scheme, which insures deposits up to £85,000 if a bank fails.
Another potential competitor for Zippay is SEPA Instant, which has been available to consumers in Ireland since January. Developed by the European Commission and European Central Bank of their own solution, SEPA Instant offers cross-border money transfers of up to €100,000 in 10 seconds or less.
