Local credit unions will beat the pillar banks in the race to offer customers instant transfers
Credit unions are poised to steal a march on the pillar banks by enabling members to send Revolut-style instant payments from September, ahead of an EU deadline that will require financial institutions to facilitate transactions within 10 seconds.
These instant transfers are part of the Single Euro Payments Area (Sepa) system, which was designed to simplify euro-denominated cross-border payments within the EU and make them as fast and simple as domestic transfers.
Typically, Sepa transfers take one to two business days – but Sepa instant payments take 10 seconds or less.
The EU's Instant Payments Regulation, which was enacted last year, stipulated that bank and payment service providers' systems should be capable of receiving Sepa instant transfers no later than January 9, 2025, and able to send Sepa instant transfers by October 9.
The service is limited to countries in the Sepa 'zone', which includes all EU member states plus Iceland, Liechtenstein, Norway, Switzerland, Monaco, Andorra, San Marino, and the Vatican.
Banks and payment companies will not be able to charge customers extra to send payments instantly.
Last week, a slew of credit unions across the country wrote to members to say they would start offering Sepa instant payments as soon as September, and posted that information on their websites. These included Crosshaven Carrigaline Credit Union, Affinity Credit Union, and Claddagh Credit Union.
Cara Credit Union, which has branches in Co Kerry, said on its website that it would offer instant payments from September 1.
Cara is part of Metamo, a business-to-business joint venture that provides products and services to credit unions. It has attracted investment from Fexco, the Kerry-headquartered financial services group.
Payac, the credit union-owned payments provider, last year signed an agreement with Milan-based payment technology firm Nexi to deliver Sepa instant payments to all participating credit unions in Ireland.
The pillar banks planned an instant payments app, but it was beset by problems
Payac, the Irish League of Credit Unions, and the Credit Union Development Association did not have anyone available to comment on the timelines for implementation when contacted by the Sunday Independent last week.
The main retail banks had planned to launch an instant payments app called Yippay to rival Revolut and N26, through a joint venture called Synch Payments – but the initiative was beset by delays and regulatory challenges.
The banks finally pulled the plug on the app in late 2023, four months after the Central Bank said the planned new service needed to be authorised by it.
Plans for the venture were co-ordinated by the Banking and Payments Federation Ireland (BPFI).
A spokesperson for the BPFI last week told the Sunday Independent that the rollout of Sepa instant payments 'will be phased in the run-up to October 9, according to the specific schedules of each individual bank and payment service provider.'
PTSB last week emailed customers to inform them they would be able to send instant payments from October 9. A spokesperson for Bank of Ireland said its customers can use instant payments via the 365 app and online banking service 'on or before October 9'.
In Ireland, 280 credit unions offer current accounts that come with online banking, a mobile app, and contactless payments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Post
9 hours ago
- Irish Post
Irish government to ease apartment standards to help combat housing crisis
THE Irish Government has introduced a plan to relax apartment design standards, aiming to speed up construction after a sharp drop in new developments being built. The updated guidelines will reduce minimum apartment sizes as well as requirements for open space and shared facilities. The move comes after a nearly 25% drop in apartment completions last year, with just over half of the government target of 50,000 units actually being built. Housing Minister James Browne said the changes are intended to make apartment buildings easier and cheaper for developers without compromising on essential quality standards. "We are using every tool available to boost supply," Browne said in a public statement, describing the move as part of the government's strategy to confront the ongoing housing crisis. However opposition figures were quick to criticise the decision, warning it could lead to cramped and poorly designed homes. Developers, on the other hand, have pointed to strict rent controls and high borrowing costs as the biggest obstacle to building. The government made changes to its rent control framework in June in its latest attempt to get more developers building again. Recent figures released by Eurostat show that on average people in Dublin can spend up to 65% of income on rent, the highest in the EU. Contrast this with Riga, the Latvian capital, where the average is around 26%. See More: Housing Crisis, James Browne
RTÉ News
10 hours ago
- RTÉ News
EU days away from tariff letter, says US President
President Donald Trump has said he is probably two days off from sending the European Union a letter disclosing the tariff rate on their exports to the US. President Trump said during a Cabinet meeting at the White House that the EU had been treating the US very nicely recently in trade talks. "They're very tough, but now they're being very nice to us, and we'll see what happens," he said. "We are talking to them," Mr Trump added. He this week again delayed their reimposition, pushing it back to 1 August. President Trump insisted that there would be no further delay in these steeper tariffs. He added that the levies would start being paid on 1 August, in line with letters now being sent out to trading partners. "No extensions will be granted," he posted on Truth Social. "There will be no change." Earlier, Tánaiste and Minister for Foreign Affairs Simon Harris said that the three-week extension for the trade deal negotiation was a "clear indication" that Mr Trump "understands there is a need for trade". Speaking ahead of a Cabinet meeting, Mr Harris said he remains concerned about the pharmaceutical industry, and that there's a "lot of work to be done". While Mr Trump imposed a sweeping 10% tariff on goods from almost all trading partners in April, higher rates customised to dozens of economies were unveiled, then halted until 9 July. Last night, Mr Trump had told reporters at a dinner that the 1 August deadline was "firm, but not 100 percent firm". Pressed on whether the letters marked his final offers, he replied: "I would say final -- but if they call with a different offer, and I like it, then we'll do it." In a push for further trade deals, Mr Trump sent letters to more than a dozen partners, including key US allies Japan and South Korea. Products from both countries would be hit with 25% duties, Mr Trump wrote in near-identical documents to leaders in Tokyo and Seoul. Indonesia, Bangladesh, Thailand, South Africa and Malaysia were among other countries facing duties ranging from 25% to 40%. Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia, received notably lower levels. In his messages to foreign leaders, Mr Trump warned of further escalation if there was retaliation against his levies. At the cabinet meeting, he insisted that "big money will start coming in on August 1". US Treasury Secretary Scott Bessent added at the meeting that tariff income could exceed $300 billion by year-end. The Trump administration is under pressure to show results after promising a flurry of deals following the US president's tariff threats. So far, the US has only struck two pacts, with the UK and Vietnam, besides an agreement to dial back staggeringly high tit-for-tat levies with China. And US talks with the UK are still ongoing over steel and aluminium duties. Mr Trump recently doubled US tariffs on imports of both metals to 50% while exempting the UK from this increase. However, the US could double the levy on UK steel and aluminium too, starting tomorrow, if it determined that the UK had not complied with terms of their earlier deal. In threatening tariff hikes on various economies, Mr Trump cited in his letters a lack of reciprocity in trading ties. He also warned that goods transshipped to avoid higher duties would be subjected to steeper levels. But Mr Trump added that if countries were willing to adjust their trade policies, the US "will, perhaps, consider an adjustment to this letter".
Irish Examiner
10 hours ago
- Irish Examiner
Michael Flatley tells court security for costs application is an attempt to embarrass him
Lord of the Dance star Michael Flatley has claimed that a court application to require him to put up €2.8million security for costs in advance of his upcoming action over works carried out at his Cork mansion, Castlehyde is 'a final effort to derail my claim'. And the entertainer in an affidavit opened to the Commercial Court said it was also an attempt to embarrass him. Michael Flatley's counsel, Ronnie Hudson BL instructed by Maxwell Mooney solicitor, told the court that the dancing star is an Irish citizen and has assets in this jurisdiction and he contended it could be 'a form of discrimination' if the court were to make an order for security of costs against him. Ms Justice Eileen Roberts has been asked by the parties being sued over work carried out on Castlehyde in Fermoy after a 2016 fire, to order that as much as €2.8m be lodged in court by the entertainer in advance of the hearing of the action. A security for costs application is usually made when the defendants in the case apply to the court seeking to have their costs covered if they end up successfully defending the main proceedings. The application in the Flatley case is expected to last two days. Michael Flatley's Statement of Affairs In an affidavit opened to the court, Mr Flatley said Lord of the Dance is continuing to sell out venues worldwide and he had spent the last 30 years of his life travelling the world promoting Ireland and Irish culture globally. He said Lord of the Dance has sold over €1bn worth of tickets. Lord of the Dance, which he said had received 'a lifetime of standing ovations' has been valued 'at a conservative minimum of €200 million". Mr Flatley also said a section of New York's 42nd St was renamed Flatley Way in recognition of his Irish American cultural work. Mr Flatley said his Statement of Affairs which valued Lord of the Dance at €200m, his whiskey business at €10m and his Castlehyde mansion at €20m is accurate. He said he owns all of the rights and intellectual property for Lord of the Dance and the valuation could be double the €200m figure. He said his liability is a €7.9m mortgage on Castlehyde which will be repaid from his business activities over the next two years. He said he agreed with the €20m valuation on Castlehyde and he regarded the suggestion that a €10.5m valuation by the defendants for the mansion is in any way credible as 'complete nonsense'. Mr Flatley in the affidavit which was sworn last month also said he 'intends to return to live in Ireland permanently as soon as possible'. Andrew Fitzpatrick SC for the underwriting and insurance defendants submitted Mr Flatley lives in Monaco, outside the EU. He said Mr Flatley's suggestion that Lord of the Dance could be worth €400m was a "wild assertion." The entertainer, he said, has repeatedly averred in court documents that he is a man of means and has means to pay costs and the court could take comfort in the fact that if it makes the order for security for costs it won't stop Mr Flatley's access to the courts. Michael Flatley told the court he regarded the suggestion that a €10.5m valuation by the defendants for his Castlehyde mansion is in any way credible as 'complete nonsense'. File picture: Denis Minihane The question to be answered, counsel said, is whether Mr Flatley has sufficient or ample assets in this jurisdiction against which an order for costs can be forced. He said his clients were concerned there are not sufficient assets in this jurisdiction and he contended the €20m value Mr Flatley puts on his Castlehyde mansion should be discounted. Counsel for Austin Newport, Stephen Dowling SC, said his side say that Mr Flatley used Castlehyde as a holiday home and as 'an ad hoc temporary residence from time to time'. In the main proceedings, the Riverdance performer claims he and his family had to vacate the Castlehyde period property in October 2023 after alleged toxic chemical residue was detected during routine maintenance. Mr Flatley is suing Austin Newport Group Ltd, the main contractor and insurance underwriters — MS Amlin Underwriting Ltd, AXA XL Underwriting Agencies LTD and Hamilton Managing Agency Limited along with Lloyds Insurance Company. All of the allegations are denied. The application for security for costs continues on Wednesday. Read More Michael Flatley challenges demand to lodge €2.8m as security for costs in Cork mansion case
