Today, low value payments are typically processed in batches. All transactions received during a working day are grouped into a batch file. This file is then submitted for further clearing and settlement at predefined times or at the end of the working day.
However, the digitalization of financial transactions leads to an natural inclination for the immediate settlement of payments – an issue which has been addresses by the concept of immediate payments. According to the Euro Retail Payments Board (ERPB) instant payments are electronic retail solutions available 24/7/365 and capable of clearing a transaction within seconds after the payment initiation.
Such solutions are today already in place in Europe in Denmark, Poland, Sweden, and the UK, as well as in several other countries throughout the world. However, there is currently no pan-European system available handling instant payments in Euro across SEPA. This issue has been addressed by the European Payment Council (EPC) since 2014 and in November 2016 the EPC published the “SCT Inst” scheme based on the existing SEPA Credit Transfer scheme.
The first pan-European instant payment service will be provided by EBA CLEARING starting in November 2017. It is currently developed and will be operated by SIA, a large service provider in the financial industry and business partner of INTERCOPE.
In close cooperating with SIA INTERCOPE extends its financial messaging solution BOX Messaging Hub to the specific requirements of instant payments and offers the participating institutions an integrated solution with highest reliability, availability, and performance. In addition, other network providers and standards such as SWIFT and EBICS can be supported.