Why are SEPA solutions interesting for Payment Institutions?
The third Payment Service Directive (PSD3) gives Payment Institutions (PI) and E-Money Institutions (EMI) direct access to clearing systems . This means that the Eurosystem (TARGET Services) of the ECB or the SEPA Clearer of the Deutsche Bundesbank (SCL) will be opened up to these institutions and they will be able to participate in payment transactions without a partner bank.
This has three main advantages:
- Very favourable transaction costs for clearing (100,000 transactions in the bulk file cost €0.0025 at SCL)
- Optimisation of own clearing processes with the clearing systems
- Access to central bank money for deposits and refinancing
What hurdles are there for access to SEPA Clearing?
SEPA interbank payment transactions are processed using special ISO 20022 message formats and communication channels. Direct SEPA participants must maintain corresponding IT systems and undergo certification for the individual services.
Why do Payment Institutions have special requirements?
Utilising the possibilities of the clearing system
Credit institutions (commonly known as "banks") need a payment transaction system, but they usually only optimise this for their own purposes and are reluctant to invest in flexible systems.
Payment and E-Money Institutions have specific business models that should be tailored to the characteristics of a payment method and the corresponding clearing system. This is not just about speed and costs, but also about transaction details from interbank payments.
SEPA clearing solutions for Payment and E-Money Institutions are usually more customised and require a modern software architecture and flexibility.