EBF POSITION

EBF position on Proposal for Instant Payment Regulation

BRUSSELS, 6 February 2023 –The European Banking Federation has published its position on the Commission’s proposal for Instant Payments Regulation (amending the SEPA Regulation). Instant payments are an important building block of the future payments landscape, with the potential to contribute innovative digital payments. The EBF position highlights that a balanced and proportionate legal framework that will support the market on the continued roll-out and development of instant payments in Europe is needed.

Building the rails for instant payments requires significant investments and adaptations by PSPs, banks in particular. Therefore, it is important that the implementation burden and cost of all the proposed measures are calibrated to ensure proportionality of cost and benefit. Indeed, we propose that the legal requirements should be limited to mandating reachability and to mandating the sending of single payment transactions through one online channel in the euro area. This would meet the intended objectives of stimulating instant payments and innovation while still offering the opportunity to compete when offering instant payments. We also believe that measures on capping pricing are inappropriate.

As regards sanctions screening, we support the proposal to move from transaction screening to client database screening. The screening of PSUs with regard to Union sanctions in case of instant credit transfers underlines the Commission’s intention to make the screening process for instant payments more efficient. However, this goal needs to be aligned with compliance obligations under other pieces of legislation and appropriate safeguards need to be in place, with sufficient alignment with applicable legal transaction-based screening requirements from other regulations and regulators’ expectations in that respect.

For more information:
Anni Mykkänen, Senior Policy Adviser – Innovation & Payments, a.mykkanen@ebf.eu

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About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.