Dear readers,

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Instant payment systems are redefining consumer and business expectations in a world where speed and efficiency are now the norm. But while the technological promise is strong, mass adoption will only come at the cost of a collective effort of education and integration. Yesterday morning, we held our first Oaklen-Utsit webinar: an opportunity to explore the challenges of this transition.

Here is what we could take away from it, in a few points.

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To go further, find our replay here (access on demand), and above all, don't hesitate to call us to talk about it!

Pssst... We have also designed a module of our Academy dedicated to this subject, Please consider writing to us.

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A global trend, local challenges

Instant payments, while available in over 70 countries, are still struggling to reach their full potential in Europe.
The launch of the SCT Inst scheme in 2018 marked a first step, but obstacles remain: costs, accessibility, adoption by banks, and the lack of guarantees comparable to those for card payments.

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These obstacles led to the entry into force of a European regulation on January 9th, which aims to accelerate their adoption. Instant payments offer significant advantages: 24/7 availability, speed of execution, immediate reuse of funds, European coverage, and enhanced security thanks to mechanisms such as VoP (Verification of Payee).

However, they have yet to prove their ability to compete with established systems in terms of value-added services and incident management.
Their success will depend on the ability of stakeholders to inform and educate.

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Business Challenges in an Instant World

Initiatives like the European Wero wallet illustrate this approach. Built on the SCT Inst platform, it offers a payment guarantee in addition to speed and aims to offer not only peer-to-peer payments but also "e" and "m" payments, while deploying on a pan-European scale. Such tools highlight the importance of a harmonized ecosystem to encourage mass adoption.

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For businesses, the adoption of instant payments opens up opportunities while also raising a host of operational implementation issues that will need to be addressed contractually with banks, which will use a payment method as the foundation for useful services. The ability to guarantee rapid payment execution while managing cash flow 24/7 remains a key challenge for financial institutions.

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Instant payments represent a profound transformation of the financial landscape, but their success depends on close collaboration between banks, regulators, businesses and end users.

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At Oaklen-Utsit, we believe that this transition must be proactively supported to ensure a smooth and beneficial adoption for all.

Ultimately, while instant payments represent a major step forward, their full integration requires a strategy combining innovation, regulation and awareness.