Instant Payment Regulation | Key areas | Samlink

The Instant Payment Solution and the IPR Imperative

News |
Share

The payments landscape in Europe is no longer evolving incrementally; it is undergoing a mandated revolution. The driver is the Instant Payment Regulation (IPR), which forces financial institutions to operate in a continuous, real-time environment. This transition transforms the challenge of IPR Compliance into a strategic necessity for competitive survival. 

Every Instant Payment Solution is now defined by three mandates: immediacy, 24/7 availability, and absolute security. 

The core of any effective Instant Payment Solution 

Any Instant Payment Solution today must address three key areas of disruption: 

  1. The Regulatory Core: IPR Compliance 

The IPR requires all euro credit transfers to be processed and settled within 10 seconds, 24 hours a day, 7 days a week. This means legacy batch processing systems are obsolete. Key mandatory provisions include: 

Cost Parity: Charges for RTP payments cannot exceed those for standard transfers, pressuring operational efficiency. 

Verification of Payee (VoP): A mandated fraud-prevention tool that must be offered for all credit transfers. 

  1. The Technology Mandate: RTP Payments

Achieving the 10-second mandate requires a complete RTP Implementation (Real-Time Payments). This is a foundational architectural shift away from monolithic systems. Banks must adopt modular payment platforms and payment orchestration layers that securely utilize APIs to connect the core ledger to external services. This continuous operational model is the engine of any modern payment solution. 

  1. Instant Payment Regulation and The Commercial Demand on Instant Payments

The high-volume consumer front is shifting entirely to mobile payments. The convergence of RTP payments and mobile technology (like NFC and payment systems) enables frictionless experiences, such as automatic payments and instant funding. Banks that can successfully enable these secure, real-time mobile interactions will capture market share and drive significant revenue. 

The time for planning is over. The IPR is here now, and the market demands instant services. A modern, compliant Payment Solution is the only way to navigate this complex environment. 

For a deep dive into the regulatory roadmaps, required architectural shifts, and commercial opportunities, read more here.