BRUSSELS, Belgium—Instant payments continue to gain traction across Europe, driven by increased consumer and business expectations, according to a new report.
In its new Trends in Regional Payments report, Ripple said initiatives like the European Central Bank’s exploration of a digital euro and the U.K.’s Faster Payments System signal “progress toward a more resilient, competitive, and innovative landscape.”
The report further states that new proposals from the European Commission also promise to reduce fraud, improve open banking functions, and harmonize administrative rules for over 270 e-money institutions and 800 payment institutions, which should in turn stimulate innovation and competition in the financial sector.
‘Work to be Done’
“Still, there is work to be done,” the report suggests. “One in three EU payment service providers do not offer instant Euro payments and up to 70 million payment accounts in the euro area do not allow holders to send and receive instant payments. Other challenges like conflicting interests, misalignment, and a lack of critical mass participants also continue to drag on the European financial landscape,” Ripple said.
“However, there is confidence that innovations driven by the region’s technological lead and digital-first approach, such as a growing embrace of CBDCs and a single E.U. payment area allowing citizens and businesses to easily make cross-border payments, give it a strong competitive edge,” Ripple added.