The clock is ticking for European banks as the EU’s mandatory instant payment regulations approach, but a recent survey by transaction data management specialist Intix reveals a worrying lack of readiness.
With just 33% of respondents confident in meeting the January 2025 deadline for receiving instant payment transactions, the findings expose critical gaps in compliance, infrastructure, and operational capabilities.
A Regulatory Challenge
The EU’s Instant Payments Regulation mandates that banks implement real-time payment systems capable of processing transactions within 10 seconds, 24/7.
By October 2025, institutions must also handle outgoing instant payments.
However, 41% of surveyed banks admitted to being only partially prepared, while 25% openly acknowledged their lack of readiness.
Compliance hurdles are significant.
Key concerns include sanction screening, anti-money laundering (AML) requirements, fraud detection, and the Verification of Payee protocols.
Meeting the stringent 10-second service-level agreement (SLA) and managing increased transaction volumes are additional pain points.
To bridge these gaps, many banks are prioritising compliance and risk management investments.
The survey revealed that 42% of respondents are dedicating the majority of their budgets to meeting regulatory requirements, with payment engine adaptations ranking as the second-highest priority at 33%.
In the realm of fraud prevention and sanction screening, banks are adopting a multi-layered approach.
Approximately 42% of institutions plan to use a combination of pre-screening, real-time, and post-screening measures to tackle these challenges effectively.
Meanwhile, 25% rely on a mix of pre-screening and real-time checks, with just 17% opting solely for real-time screening.
The ISO 20022 Transition
A significant aspect of compliance is the adoption of the ISO 20022 standard, which enhances data richness and interoperability in financial messaging.
While 50% of banks are in the process of transitioning to ISO 20022, nearly 40% have already made it their primary standard.
However, 8% of respondents remain inexperienced with the standard, highlighting a lag in adoption that could impede compliance efforts.
While a third of institutions are on track, the majority must accelerate investments in compliance, infrastructure, and technology to avoid regulatory penalties and maintain their competitive edge in the evolving financial landscape.
Source: Payments Cards and Mobile
