The European payments landscape is rapidly evolving, with the SEPA Payment Account Access (SPAA) scheme emerging as a key initiative to make Open Banking more accessible, commercially viable, and valuable. Created by the European Payments Council (EPC), SPAA goes beyond the framework of the EU’s Payment Services Directive 2 (PSD2) by enabling a new level of secure, API-based access to payment accounts. This setup allows third-party providers, Asset Brokers, and account holders to interact in a balanced, fair environment designed to foster innovation and competition.
SPAA addresses a core challenge in Open Banking: without a commercial incentive, banks and financial institutions have been hesitant to invest, bearing significant costs with limited returns. In the UK alone, annual Open Banking costs reach GBP 100 million, with a cumulative investment of GBP 1.5 billion, according to the Future of Payments Review. With many more banks across Europe, the expenses are even higher. SPAA introduces premium’ APIs, adding enhanced features to the free, basic APIs required by PSD2. These premium services allow financial institutions to monetise their investments in Open Banking, making the framework not only sustainable but appealing to a broader market.
The SPAA scheme involves four key actors: Asset Holders, Asset Brokers, Asset Owners, and Asset Users. Asset Holders, representing institutions holding payment-related assets, collaborate with Asset Brokers who access these assets on behalf of their customers, the Asset Users. Asset Owners, whether individuals or firms, entrust Asset Holders with managing their payment transactions, while Asset Users access transaction or information assets through Asset Brokers with the consent of the Asset Owner.
The journey began in 2021 when the European Retail Payments Board invited the EPC to manage a new API Access Scheme, which they later named SPAA. This new responsibility was a chance to rethink how payments could be made even more secure and efficient across Europe. With this aim, SPAA was crafted to address the limitations of PSD2 by expanding its reach and introducing a business-friendly model that incentivises participation rather than making compliance feel like a burden.
SPAA really took off in 2022, when the EPC released the first version of the SPAA rulebook. This rulebook covers a range of standards, protocols, and practices that allow smooth data exchanges and payment transactions, especially through Premium’ API services that go beyond PSD2 requirements. These Premium APIs introduce features like Dynamic Recurring Payments (DRP), Europe’s version of Variable Recurring Payments (VRP). With DRP, one-click checkouts and convenient subscription renewals become possible, creating a better experience for both users and merchants.
In 2023, SPAA’s rulebook was updated to version 1.1, and the EPC also published the SPAA Default Fees guide. These fees apply to Premium services provided through SPAA’s API but are flexible, allowing asset holders and brokers to agree to lower fees if they choose. SPAA’s model is designed to be adaptable, ensuring that all parties can benefit without rigid costs.
In May 2024, SPAA announced a call for participants for its tactical pilot programme, inviting asset holders and brokers to test SPAA’s rulebook, pricing model, and framework. So far, six Asset Brokers and one asset holder have joined this pilot programme, which will help the EPC gather insights and refine SPAA for a live rollout.
This pilot is an essential step toward getting SPAA ready for the market. The ultimate goal is to expand account-to-account (A2A) payments across the EU, offering a more efficient and secure alternative to traditional payments. Supported by European authorities, SPAA has the potential to become a central part of Europe’s Open Banking landscape, transforming the way payments are made and managed. The early participation of five Asset Brokers in the SPAA Scheme Register of Participants is a promising indicator of SPAA’s potential to reshape the financial sector.
In a recent interview with The Papers, EPC’s Director General, Giorgio Andreoli, sat down with me to dive into the SPAA scheme’s goals and what it means for Europe’s Open Banking ecosystem. Andreoli explained that SPAA is a real opportunity to move Europe’s Open Banking landscape forward by introducing a structured, multi-stakeholder approach that makes payment account access simpler, more efficient, and fairer for everyone.
According to Andreoli, while PSD2 introduced strong security measures and reduced fraud, it sometimes lacked the incentives needed to get asset holders on board. PSD2 often felt like a regulatory requirement more than a financial opportunity. SPAA, on the other hand, was built with a solid business model that makes participation attractive. Its multilateral framework distributes value and risk fairly, benefiting banks, financial institutions, TPPs, and end-users alike.
One of SPAA’s standout features is Dynamic Recurring Payments (DRP), which gives users a flexible, user-friendly payment experience that’s perfect for today’s ecommerce and subscription-based economy. With DRP, payments are more interactive, letting users have greater control over recurring transactions. This flexibility is particularly appealing to younger consumers, who often prefer a payment system that offers transparency and ease of use.
For merchants, DRP brings major benefits too. It allows more predictable payment collections, making it easier to manage cash flow, especially with subscriptions. Merchants can offer one-click checkouts and convenient subscription renewals that make for a smooth, hassle-free customer experience.
SPAA’s design supports a wide range of uses, from simple payments to more complex financial services. Here are a few key ways SPAA is set to make a difference:
• Retail payments: SPAA’s A2A model supports seamless transactions for both online and in-store payments, cutting out the need for traditional card networks.
• Data aggregation: by collecting and presenting financial data, SPAA enables both consumers and businesses to make more informed decisions.
• Payment certainty: through SPAA, an asset broker can combine a future payment with a certainty feature, allowing merchants to release goods, like pre-orders, with guaranteed payment for a seamless customer experience.
For banks and financial institutions, SPAA represents a way to turn their PSD2 compliance investments into revenue-generating tools. Andreoli pointed out that SPAA offers these institutions a way to profit from their existing PSD2 setups rather than merely complying. As instant payments and faster payment options become standard, SPAA’s timing fits perfectly with the shift toward more flexible, efficient payment systems. Early adopters can establish themselves as leaders in Open Banking and premium API services, putting them in a strong position as Europe heads into an Open Banking growth phase, expected to boom between 2025 and 2026.
While SPAA has made impressive progress with the rulebook, pilot program, and early participants, there’s still a lot of work to be done to make it a true success. First, more participants, especially ASPSPs, are needed to build a robust, diverse network of SPAA users. Second, aligning SPAA with upcoming regulations – such as PSD3 and the new Payment Services Regulation (PSR) – is essential to ensure that the scheme can adapt to regulatory changes and market expectations.
Andreoli noted that while the EPC has laid the basic ‘rails’ for SPAA, the ‘trains’ will need to come from private sector players ready to innovate. Major players, such as Tink, Token, TrueLayer, and GoCardless, are already on board, working on standardisation efforts with groups like the Berlin Group’s Open Finance API framework. But more contributions from banks and financial tech companies will be key to SPAA’s full success.
During a recent EPC webinar, Fostering Open Banking in Europe: The Impact and Opportunities of the SPAA Scheme, the discussion highlighted that one of the main challenges is the compliance demands facing Payment Service Providers (PSPs). These providers are managing several regulatory initiatives, such as the Instant Payments Regulation (IPR), eIDAS Regulation, and Payments Services Regulation (PSR). The complexity and cost of these regulations can be a burden for Asset Holders and other stakeholders, making them more cautious about adopting new frameworks like SPAA. Additionally, the effort required to understand and implement these regulations can limit interest in new initiatives. As the saying goes, it takes two to tango – for SPAA to succeed, active participation is needed from both Asset Holders and third-party providers (TPPs).
During the EPC webinar, industry experts shared their thoughts on what’s needed for SPAA’s success. They agreed that while SPAA’s potential is huge, its success depends on overcoming regulatory challenges, perfecting technical standards, and getting more asset holders, brokers, and merchants on board. The groundwork has been laid, and as more players join, SPAA is set to revolutionise Europe’s payments ecosystem, driving the next big wave of Open Banking innovation.
A key area that requires attention is the refinement of SPAA’s rulebook. While version 1.1 has laid the groundwork, further refinement is necessary to ensure true interoperability across various systems and participants, making it easier for all players to integrate and work together seamlessly.
A notable example of practical engagement comes from the German Savings Banks (DSGV), which, as the only Asset Holder involved in the SPAA pilot, has recognised the value of SPAA as an attractive distribution channel. They see it as an opportunity to test and refine the model in real-world scenarios, emphasising the importance of piloting to understand the complexities of the scheme. As Christian Schäfer mentioned, ‘the best way of learning things is to pilot them, figure them out.’
On the third-party provider side, TrueLayer has emerged as the first TPP to sign up for SPAA, offering alternative payment methods that add value for merchants and customers alike. TrueLayer is helping move beyond traditional Payment Initiation Services (PIS) into more intelligent payment solutions that incorporate features like account verification, identity verification, and Variable Recurring Payments (VRP). These advancements require new API endpoints from asset holders, which is where SPAA’s commercial APIs come into play. These APIs provide the necessary building blocks for merchants to offer more intelligent, seamless payment experiences to their customers, particularly in online purchases.
As Louise Beaumont from Mastercard mentioned, there is a real competitive advantage for companies looking to offer DRP-enabled Open Banking products. They have the opportunity to influence the evolution of SPAA, including its governance, use cases, and commercial aspects. It’s crucial to understand that SPAA forms the foundation of FIDA, presenting a chance to stay ahead of other financial services players.
With SPAA’s secure and commercially sustainable model for payment account access, Europe’s Open Banking system is set to get a major boost. SPAA’s features, tailored to modern payment needs, are designed to turn compliance into a profitable venture for banks, Asset Brokers, and merchants alike. By blending regulatory support with market interest, SPAA is well-positioned to lead Europe’s digital finance future, bringing Open Banking closer to consumers and businesses in a way that’s flexible, secure, and convenient.
Merchants are increasingly eager to offer account-to-account (A2A) payment options as a way to lower interchange fees associated with card payments. By leveraging SPAA’s capabilities, they can reduce costs and enhance the payment experience for consumers. This shift offers a valuable opportunity to capture market share, streamline payments, and further drive the adoption of A2A payments across Europe.
With the active engagement of key players, SPAA has the potential to reshape the future of payments in Europe and drive the next wave of Open Banking innovation.
This editorial piece was first published in The Paypers' Open Finance Report 2024, the latest comprehensive market overview and analysis focusing on the key players and products within the Open Banking and Open Finance ecosystem. Download the full report to discover more insightful content.
As Lead Editor at The Paypers, specialising in the Banking and Fintech domain, Oana leads the editorial direction on key topics such as Open Banking, Embedded Finance, and Banking-as-a-Service. The Paypers is a global publication that delivers in-depth insights and thought leadership on payments and fintech innovation.
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