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Introduction
As European banking institutions quickly face up to key 2025 events for SEPA Instant compliance, there is a growing sense of urgency developing across the region. The SEPA Instant framework aims to standardise euro payments across the Single Euro Payments Area, with key milestones shaping regulatory and technical landscapes for financial institutions (FIs) operating in this area.
Banks that have not yet addressed compliance for SEPA Instant credit transfers are running out of time. As that deadline nears, the next focus shifts to October 2025, when compliance for SEPA Instant Debit and Bulk Payments will become mandatory. This opinion explores how banks can achieve compliance through the adoption of modern payment solutions that align with SEPA Instant standards, particularly for those whose current payments solutions are non-compliant or inadequately prepared for these upcoming deadlines.
SEPA Instant Debit and Bulk Payments: The Regulatory Context
The SEPA Instant framework is driven by the European Payments Council (EPC) and mandates that banks operating in the eurozone must provide near-instant processing of credit transfers and, by extension, debit and bulk payments. By October 2025, banks must ensure that:
Failing to comply with these requirements could lead to regulatory penalties, reputational damage, and a loss of competitiveness as customer expectations shift toward faster and more reliable payment systems.
Challenges Faced by Banks with Non-Compliant Payment Solutions
For many banks, the shift to SEPA Instant compliance requires a fundamental overhaul of legacy payments infrastructure. The primary challenges faced include:
The Path to SEPA Compliance
For banks to ensure compliance with the SEPA Instant regulations by October 2025, it is critical to adopt a payment solution that addresses both the regulatory requirements and the operational challenges of modern payments processing. Several key features and capabilities are essential for banks to meet the SEPA Instant Debit and Bulk Payments requirements:
Key Features for Compliance
Steps to Achieving Compliance by October 2025
To ensure readiness for SEPA Instant compliance, banks must consider a solution that provides a structured, step-by-step process. The focus should be on addressing key operational and technical requirements for instant debit and bulk payments:
Case Study: A Path to Compliance with a Modern Payment Solution
Consider a mid-sized European bank struggling with outdated payments infrastructure and facing difficulties in meeting SEPA Instant mandates for both debit and bulk payments. By implementing a modern payment solution, the bank was able to:
The Benefits of Acting Now
With the January 2025 SEPA Instant deadline just around the corner, acting quickly is essential for banks still finalising their compliance strategies. After this, attention will shift to the October 2025 deadline, when SEPA Instant Debit and Bulk Payments compliance becomes mandatory. Banks that begin their journey to SEPA Instant compliance now stand to benefit in several ways:
Conclusion
As the January 2025 SEPA Instant deadline passes and the focus shifts to the October 2025 mandate for debit and bulk payments, European banks must act quickly to ensure compliance. By adopting a compliant payment solution, banks can ensure they meet SEPA Instant mandates while enhancing operational efficiency and improving customer satisfaction.
For banks struggling with non-compliant payment systems, a modern payments solution provides the tools and support needed to ensure compliance with SEPA Instant regulations and drive long-term growth in the evolving payments landscape.
Next Steps
Banks are encouraged to evaluate their current payments infrastructure and begin implementing modern solutions that align with SEPA Instant requirements. A strategic approach to compliance will not only help meet regulatory deadlines but also position banks for future growth in the dynamic payment’s environment.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Tachat Igityan Founder and CFO at destream
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Victor Irechukwu Head, Engineering at OnePipe Services Limited
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Nkahiseng Ralepeli VP of Product: Digital Assets at Absa Bank, CIB.
Francesco Fulcoli Chief Compliance and Risk Officer at Flagstone
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