Irish banks halt plans for Synch Payments

Synch Payments was established in 2020 and it was developed to become an alternative to Revolut, with AIB, Bank of Ireland, Permanent TSB, and KBC intending to create a mobile payment app for consumers and businesses in Ireland. According to the press release, plans for the app persisted even after KBC decided to leave the Irish market.

Synch Payments secured its authorisation from the Competition and Consumer Protection Commission (CCPC) in June 2022, however, since then it had several delays, with the most recent one being in July 2023. In a statement published on its website, Synch Payments declared that it reached the decision that it is no longer feasible to launch Yippay, its payment app, into the Irish market, as well as that it will cease all operations. Moreover, it mentioned that a combination of factors contributed to an elongated timeframe to launch, making the original Synch proposition no longer viable.

The press release also mentioned that in July 2023, the company stated that it required approvals under EU payment regulations to continue its operations and needed to submit an application to the Central Bank for authorisation as an Account Information Services Provider (AISP) and as a Payment Initiation Service Provider (PISP), with its objective at that time being to enter the market in 2024.

As a response to Synch’s decision to cease its plans, the Central Bank stated that any company offering this type of payment service requires appropriate authorisation and Synch was engaging with the bank but did not start the application process. Furthermore, the decision to end the project may come as a development to Revolut, which retains a significant segment of the instant payments market in Ireland.

In July 2022, Synch Payments chose Nexi as its platform and service provider for instant mobile payments. The announcement followed its authorisation by the CCPC, with the company being cleared to trade and enabled to fully focus on planning the launch of the mobile app. At that time, the partnership with Nexi was intended to allow Synch Payments to provide Irish banks and authorised financial institutions with a service that enabled merchants to receive A2A payments at the point of sale and ecommerce with a mobile-only user experience for consumers. This aimed to reduce the overall costs and contribute to further accelerating the use of digital payments in Ireland. AIB, Bank of Ireland, Permanent TSB, and KBC’s objective was to have an A2A, mobile payment solution for all payment types, to friends, family, retail, and ecommerce, with an instant mobile payment experience for all consumers and businesses in Ireland.