Background: The Instant Payments Regulation
In 2024, the EU adopted the Instant Payments Regulation (IPR), which amends the SEPA framework to make instant euro credit transfers mandatory across the European Economic Area (EEA).
The regulation comes with strict deadlines:
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9 January 2025: Euro-area Payment Service Providers (PSPs, e.g. banks) must be able to receive instant payments.
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9 October 2025: Euro-area PSPs must also be able to send instant payments.
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9 October 2025: Verification of Payee (VoP) becomes mandatory, ensuring that the name of the payee matches the IBAN before payment execution.
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Equal pricing: Instant transfers must cost the same as standard SEPA credit transfers.
At the same time, the European Payments Council is introducing the updated 2025 SEPA Instant Credit Transfer (SCT Inst) rulebook, tightening execution times and improving technical clarity.
Will It Really Be Followed?
The regulation leaves little flexibility: PSPs are legally required to comply. Still, challenges exist:
Why compliance is likely
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Strong regulatory and competitive pressure
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Increasing customer expectations for real-time payments
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Updated rulebooks and guidance
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Availability of third-party infrastructure and fintech support
Why delays are possible
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Legacy banking systems not designed for 24/7 real-time transfers
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Interoperability challenges between PSPs and clearing systems
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Increased fraud and compliance risks due to the irreversibility of instant transfers
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Cost pressures for smaller PSPs
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Possible uneven enforcement across EU states
What Will Change
For individuals and businesses
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Real-time euro payments available 24/7/365
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Verification of Payee checks to reduce errors
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No extra charges compared to standard transfers
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Higher transfer limits under the new rulebook
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Faster confirmation and clearer refund timelines
For merchants
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Expectation for instant checkout and settlement
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Better conversion compared to delayed payments
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Need to adapt reconciliation and accounting systems
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Elimination of chargeback risk compared to cards
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New opportunities for B2B and payout flows
For banks and PSPs
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Mandatory compliance with instant payment and VoP obligations
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Need to modernize infrastructure for always-on operations
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Real-time risk management and compliance checks
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Handling operational resilience and downtime risk
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Pressure to maintain service at no extra charge
How Yowpay Will Help
Yowpay positions itself as a facilitator for merchants and PSPs to benefit from SEPA Instant adoption.
Yowpay’s strengths
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Instant payment orchestration: QR codes, open banking, or manual SEPA flows.
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Business accounts: Merchants receive funds directly, without passing through intermediaries.
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Automatic reconciliation: Payment references are matched to invoices in real time.
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Multiple rails: Open Banking, EPC QR, and manual SEPA — boosting conversion.
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Chargeback-free: Payments are final and transparent.
Benefits under the mandate
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Merchants access instant rails without needing direct bank integrations.
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Compliance with Verification of Payee requirements is simplified.
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Faster onboarding and plug-and-play setup compared to building in-house.
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Yowpay absorbs complexity of fallback routing and error management.
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Cost-efficient solution at scale, compared to individual PSP development.
Conclusion
The 9 October 2025 milestone marks the transition of SEPA Instant from optional to mandatory. While technical and operational challenges remain, the regulation ensures euro instant transfers will soon be the norm across the Eurozone.
For merchants, this is an opportunity to embrace faster settlement, higher conversion, and reduced risk. For banks, it means investing in robust real-time infrastructures.
With its orchestration model, Yowpay is uniquely positioned to bridge the gap — helping merchants, fintechs, and PSPs navigate the new instant era smoothly and cost-effectively.