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.
Unprepared for instant payments regulation
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.
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