Navigating the New SEPA Regulatory Changes: What Every Financial Institution Needs to Know

SEPA, or the SingleEuro Payments Area, facilitates seamless euro transactions across Europe. The upcoming regulatory updates include:

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- Instant Payment Regulation: The new Instant Payment Regulation (Regulation 2024/886), effective from April 2024, is designed to unlock the full potential of instant payments across Europe. By January 9 ,2025, Payment Service Providers (PSPs) in the Eurozone must support instant payments (SCT Inst) alongside standard transfers. This regulation will modernize payment systems, promote financial digitization, and provide alternatives to traditional card payments.

The current 2023 SEPA Instant Credit Transfer (SCTInst) scheme rulebook (version 1.2, effective since 17 March 2024) already complies with the IPR requirements set to take effect on 9 January 2025.

The dates to take into consideration are:

- New 2025 Rulebooks: For the obligations on Instant Payments entering into effect on 9 October 2025, andat a later stage for Electronic Money Institutions (EMIs), Payment Institutions(PIs) and PSPs based in non-Euro countries, the 2025 SCT Inst scheme rulebookand implementation guidelines will be published on the EPC’s website by November 2024 and will take effect on Sunday, 5 October 2025.  

These regulatory updates are designed to enhance the payments ecosystem, but they also bring aset of challenges that financial institutions cannot afford to overlook. To stay competitive and compliant, your institution must take prompt and decisiveaction in the following areas:

• Full Reachability: PSPs must offer instant payments alongside standard credit transfers, with key deadlines of January 9, 2025, for incoming transactions and October 9, 2025, for outgoing transactions.
• Consistent Channel Availability: Instant payments must be available on all channels where standard transfers are offered, including online banking, file transfers, and branch services.
• Fee Parity: The fee for instant payments must not exceed the fee for standard credit transfers.
• Payee Validation: To prevent fraud, PSPs must provide a service at no additional cost that allows customers to verify the payee’s name and IBAN before sending an instant payment.
• Sanction Screening: While real-time verification of each payment before release is no longer required, customers must still be screened daily against EU sanction lists.

It is important to mention, that the prohibition on transaction-based screening applies specifically to EU-wide sanctions lists.

• Bulk SCT Inst: PSPs offering bulk payment services for standard credit transfers must also provide the same capability for instant payments.

Navigating these regulatory challenges may seem daunting, but with Payments Hub by Getnet Platforms, you can turn these obstacles into opportunities. Our platform is designed to keep your institution effortlessly compliant with the latest SEPA regulations, automating processes to reduce the need for manual intervention and mitigating compliance risks.

Beyond compliance, Payments Hub offers seamless integration with your existing systems, ensuring as mooth transition to the new regulatory framework without disrupting your operations. As regulations evolve, your institution can continue to operate efficiently, with Payments Hub managing the complexities in the background.

Engineered for high performance and reliability, our Payments Hub enables your institution to handle large transaction volumes with ease, while also connecting seamlessly to various global payment schemes. This optimization helps you control costs and maintain a high standard of service, allowing you to focus on what truly matters—growing your business.

Are you ready to overcome the challenges of SEPA’s new regulations? Our innovative solutions are here to help you simplify compliance, reduce operational burdens, and focus on what you do best —taking your business to new heights. Reach out to us today to learn more about how Getnet Platforms can transform your payment processes. Join us in shaping the future of payments. Just payments. Made easy.