All Estonian banks should rollout IP within a year, says central bank

All banks operating in Estonia should introduce instant payments within a year, said central banker Madis Müller, the Bank of Estonia’s deputy governor.

SEB is currently the only bank in Estonia to offer single euro payments area (SEPA) instant credit transfer (SCT Inst) compliant fast payments to its customers in the country,

According to the deputy executive of the central bank, when instant payments become more widespread, it will allow banks and companies to change to new business models. It will be possible to develop payment solutions that will make it easier for individuals to settle payments among themselves and pay for purchases in stores or internet stores, he added.

The Single Euro Payments Area (SEPA) Instant Credit Transfer Scheme was launched on Nov. 21, when approximately 600 payment service providers made instant payments available in Austria, Germany, Spain, Italy, the Netherlands, Estonia, Latvia and Lithuania.

Instant payments from one bank to another, limited to a maximum of USD15,000 in size, are processed via compliant CSMs within seconds. Clients can make and receive instant payments in banks that have implemented the new scheme.

While the instant payment scheme is voluntary for participating banks and payment service providers, joining the system does require readiness to process payments within seconds 24 hours per day, 7 days per week. The new payment scheme was established by the European Payments Council.