⚡️Europe in 2030: a ClearBank study forecasts strong growth in SEPA Instant payments

⚡️Europe in 2030: a ClearBank study forecasts strong growth in SEPA Instant payments

According to the study, the European instant payments ecosystem is expected to match—and even surpass— traditional credit transfers by the end of the decade.

➡️ Sample: the research surveyed representatives from 100 financial institutions across 10 European markets.

➡️ Regulatory framework:

👉 Under the EU Instant Payments Regulation, from July 2027 onward, all banks, electronic money institutions, and payment systems — including those based outside the euro area — will be required to send and receive instant euro-denominated payments.

👉 The cost of instant transfers must not exceed that of standard credit transfers.

👉 Under these conditions, SEPA instant transfers are projected to become the second most widely used cashless payment method by 2035, accounting for approximately 18% of all transactions in the euro area.

➡️ Costs or investment❓ — most banks believe that total regulatory compliance costs will exceed 20 million euros, with a significant portion budgeting up to 100 million euros. In contrast, most non-bank providers estimate costs below 10 million euros.

➡️ This gap appears to have a direct impact on product development: banks more frequently collaborate with corporate clients to develop new instant-payment use cases than their non-bank counterparts.

➡️ Rising competition: this trend is already visible and stems from the Settlement Finality Directive, which allows electronic money institutions to apply for direct participation in SEPA clearing systems. More than 40% of surveyed electronic money institutions indicated their intention to obtain direct access, with some having already done so.

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