An article by
Dr. Martin Berger
Table of content
SEPA Instant Credit Transfer: Shortly explained
SEPA Instant Payments are available as SEPA Instant Credit Transfer (SCT Inst) for a good two and a half years and were developed by the European Payments Council. The core characteristics of this ultra-fast SEPA transfer procedure are as follows:
- 10 seconds — the transferred amount should be booked on the recipient’s account within this period.
- EUR 100,000 — the maximum limit of the transfer. With effect from July 1, 2020, this limit was raised from EUR 15,000.
- 24/7/365 — Availability without downtime.
- In SEPA countries — SCT Instant Payment should be offered in all countries of the SEPA area.
Clearing of SEPA Instant Credit Transfer
SEPA Instant Payments can currently be processed by financial institutions and payment service providers via two clearing networks:
- The European Central Bank offers the Target Instant Payment Settlement (TIPS) service for this
- The EBA Clearing offers the RT1 service for this
Latest News & CPG blog posts
- August 2021: Instant Payments in SEPA: How widespread is that in August 2021?
- June 2021: Latest figures from the point of view of interbank payments: Instant SEPA Payments: Current figures from June 2021
- April 2021: New analysis in the article SEPA Credit Transfer Instant: Analysis of the adaptation in April 2021.
- February 2021: We analyze in our blog post Instant Payment System: News and insights from February 2021 the current status.
- 01/29/2021: ECB explores the feasibility of a digital euro (in German). The ECB is also investigating whether the digital version of the EUR currency could be processed on the basis of TIPS.
- December 2020: We report in the article SEPA Instant Payments: News and insights from December 2020 about current developments regarding SEPA Instant Credit Transfer.
- November 2020: The Deutsche Bundesbank informs in circular no 70/2020 (in German) as a result of the ECB Council decision of July 2020 that SCT Inst process participants who can be reached in TARGET2 must also be available in TIPS from November 2021. The European Central Bank deals with this in the following publication: How to make instant payments the new normal in Europe?
- October 2020: We analyze in our blog post Instant Payment: News and insights from October 2020 the current status.
- September 2020: On September 16, 2020, the Bundesbank reported in its newsletter on payment transactions and securities settlement of an ECB Council decision of July 24, 2020, which states that all in TARGET2 (2nd generation of the Trans-European Automated Real-time Gross Settlement Express Transfer System) reachable payment service providers who have subscribed to the SEPA Instant Credit Transfer Scheme must be reachable in TIPS. This means that accessibility in TIPS must be guaranteed either through direct participation in TIPS with your own account or through the reachable party functionality. This resolution gives hope that future interoperability problems will be reduced and greater penetration of the SEPA area will be achieved.
- August 2020: In our SCT Instant Payment participation analysis, we evaluate how financial institutions participate in SCT Inst up to August 2020.
- June 2020: In an Instant Payments data analysis, we consider how financial institutions participate in SCT Inst until June 2020.