The fast track to SEPA instant payments

In a few months, instant credit transfers in the SEPA area will become mandatory for European banks. Institutions that have not yet offered money transfers in accordance with the SEPA instant credit transfer scheme (SCT Inst for short) must act now. In addition to a tight schedule, the increasing shortage of skilled personnel and other changes in payments, such as PSD3, EPI and the digital euro, must also be taken into account. In this situation, PPI's TRAVIC-Instant-Payments-as-a-Service model is the perfect solution. With it, institutions can ensure their regulatory compliance quickly and cost-efficiently.

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High system requirements

Overview of characteristics of TRAVIC-Instant-Payments-as-a-Service by PPI
Overview of characteristics of TRAVIC-Instant-Payments-as-a-Service by PPI
The cloud-based out-of-the-box solution TRAVIC-Instant-Payments-as-a-Service enables financial service providers to comply in a timely and resource-conserving manner with the upcoming obligation to offer SEPA instant payments.

In the future, payment service providers in the euro area will no longer be able to avoid offering instant credit transfers based on SCT Inst. A corresponding obligation by the EU commission will come into force at the turn of the year. More than half of the institutions still have to integrate corresponding offers into their portfolio and, above all, into their IT systems. The requirements are high:

  • Financial institutions must give their customers the possibility to match the name and IBAN of the payment recipient in real time.
  • At least once a day, customer data must be checked against the current EU sanctions lists.
  • At the same time, a credit transfer via SEPA instant payments must not be more expensive than a standard credit transfer; as a rule, the service must thus be offered to the customer free of charge.

This task in itself is already highly demanding and ties up considerable resources, which are more or less stretched to the limit at many financial institutions anyway. On the one hand, a whole series of other projects for the implementation of regulatory stipulations are running at the same time. On the other hand, companies are feeling the full impact of the shortage of skilled personnel, especially in the IT sector. Under these circumstances, is a timely implementation of the European requirements feasible at all?

SCT Inst as a service solution

The clear answer: yes, SCT Inst can be implemented in a timely and resource-saving manner. As the provider of the market-leading SEPA instant payments platform, PPI offers a cloud-based out-of-the-box solution that can be integrated into any IT infrastructure in a relatively short period of time. TRAVIC-Instant-Payments-as-a-Service uses PPI's TRAVIC suite within the framework of an operator model and thus enables a bank to be quickly connected to the TARGET Instant Payment Settlement System (TIPS).

The characteristics of TRAVIC-Instant-Payments-as-a-Service
The characteristics of TRAVIC-Instant-Payments-as-a-Service
The characteristics of TRAVIC-Instant-Payments-as-a-Service

Modular system

TRAVIC-Instant-Payments-as-a-Service is a modular solution that includes the following services in the basic model:

  • Connection to TIPS
  • Processing cross-border, high-value and mass payments
  • Payment recall functions including recall archive
  • Standard interfaces to all relevant banking systems such as master data management, booking systems or archiving
  • Application interfaces (APIs) for the integration of customer channels
  • SWIFT Service Bureau

Depending on the needs and wishes of the respective institution, further modules and services can be integrated:

  • Connection to RT1 via TIPS bridge
  • RT1 reconciliation
  • Alternative routings
  • Replacement function for the booking system
  • Connection to the compliance function of the financial institution or a sanction screening service
  • Message-based interfaces for connection to data record-based customer channels
  • Instant channel for SWIFTNet for data exchange with TIPS
  • EBICS channel (customer and server side) for communication with RT1
  • Liquidity management of TIPS accounts
  • Outsourcing of instant payments-specific business processes

Do you want to implement mandatory SEPA instant payments quickly and in a resource-efficient manner? Get in touch with us to learn more!

Can we assist you?

Broder Schümann PPI AG

Broder Schümann

Head of Product Management

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