IPR, SEPA, and RTP: Clarifying the Real-Time Payments Ecosystem
Understanding the relationship between the Instant Payment Regulation (IPR), the SEPA Instant Credit Transfer (SCT Inst) scheme, and Real-Time Payments (RTP) technology is vital for strategic compliance.
The rapid shift to instantaneous fund settlement has introduced several new terms, often leading to confusion for financial institutions planning their modernization roadmap. The core of the European mandate is clear: Real-Time Payments are now the standard.
This post clarifies the terminology by directly answering the most frequently asked questions regarding the EU payment landscape.
What is the payment regulation in the EU?
The primary and most recent regulation driving instant payments in the EU is the Instant Payments Regulation (IPR) (officially Regulation (EU) 2024/886).
The IPR is aimed at accelerating the roll-out of instant euro transfers across the EU. It does this by amending existing EU payment legislation, including the SEPA Regulation and the Payment Services Directive (PSD2), to add specific, mandatory requirements for instant credit transfers.
In short: The IPR is the regulation that makes instant payments the default, building upon the established legal framework of PSD2.
Is SEPA Instant Mandatory?
Yes, effectively, under the IPR.
While the IPR does not prohibit offering standard credit transfers, it mandates that Payment Service Providers (PSPs) who offer standard euro credit transfers must also offer their users the service of sending and receiving instant euro credit transfers.
The technical scheme used to execute these instant euro transfers is the SEPA Instant Credit Transfer (SCT Inst) scheme. Therefore, the IPR makes participation in the instant payment ecosystem mandatory for most PSPs, meaning adherence to the SCT Inst scheme rulebook is necessary.
The deadlines for implementation are staggered, starting with the requirement for Euro area Member States to be able to receive instant payments by January 9, 2025, and send instant payments by October 9, 2025
What is the difference between instant and SEPA?
The core difference is that SEPA defines where (the geographic area) and how (the rules) funds are transferred in euro, while SEPA Instant defines the speed of that transfer.
The difference is one of speed and scheme:
| Feature | SEPA (Standard Credit Transfer – SCT) | SEPA Instant (SCT Inst) |
| Definition | The scheme (or set of rules) for non-urgent euro transfers across the 36 SEPA countries. | The rapid version of the SEPA Credit Transfer, governed by the same SEPA rules. |
| Speed | Typically up to one business day. | Instantaneous: Funds available to the payee within 10 seconds. |
| Availability | Processed during standard banking hours (business days). | 24/7/365 (including weekends and holidays). |
What is an instant payment system?
An instant payment system is the technical, electronic funds transfer infrastructure that enables RTP Payments.
This system must:
- Process payments in real-time (within seconds).
- Be available 24/7/365.
- Result in the immediate interbank clearing and crediting of the payee’s account.
- Provide immediate confirmation to the payer.
For banks, implementing an instant payment system, the core of the RTP Implementation challenge, requires moving away from legacy batch processing to modular, API-driven architecture capable of handling the continuous, high-volume flow of instant euro transfers.
Navigating the shift from SEPA to mandatory Real-Time Payments requires a strategic upgrade of your core infrastructure. Ensure your bank meets all IPR deadlines and leverages instant payments for competitive advantage by exploring Samlink’s Advisory Services.