The European Central Bank has announced a six-month delay in implementing new rules that would grant non-bank payment service providers (PSPs) access to central bank-operated payment systems such as Target. Originally slated to take effect in April 2025, the updated deadline has now been pushed to October 2025 due to delays in legislative transpositions by certain EU member states.
The policy change, part of the broader Instant Payments Regulation, modifies the Settlement Finality Directive to allow non-bank PSPs to participate in designated payment systems. The goal is to increase competition, foster innovation in the payments sector, and accelerate the adoption of instant payments across the European Union.
The ECB emphasized that the delay is necessary to mitigate legal risks and ensure uniform eligibility for non-bank PSPs under the revised framework. Once enacted, the amendment will permit access to both T2, used for settling large-value payments, and TIPS, the system designed for instant retail payment settlement.
Despite the postponement, the ECB maintains that this regulatory evolution is crucial for driving greater efficiency and inclusivity in Europe’s retail payments ecosystem.