European instant payments: sovereignty and cross-border interoperability

Fernando Rodríguez Ferrer, Chief International Business Officer at Bizum, explains why payments sovereignty matters, how instant payment interoperability is evolving across Europe, and what it means for cross-border transactions and merchants.

 

Payments sovereignty has become a relevant topic in Europe. From Bizum’s perspective, what does sovereignty mean in practice for payment systems, and what’s the reason for it gaining urgency now?

I think the trend here is undeniable, and it is being driven by several factors. In Europe, there is a clear ambition to build pan-European payment systems that operate seamlessly across all member states. Regulation is playing a key role in this, particularly through efforts to strengthen shared infrastructure. That includes initiatives around instant payments in euros, as well as extending interoperability to markets outside the euro area.

Cross-border interoperability is a major focus on the global agenda, as many countries already can send money instantly at a domestic level. At the same time, this shift is not only about geopolitics, although recent events have highlighted the importance of resilient and regionally controlled infrastructure. More broadly, Europe wants to remain competitive across key sectors, including payments. Strengthening its own capabilities is part of that strategy.

From a user perspective, expectations have already changed. People are used to making instant payments, often through mobile-first solutions. When they travel or transact across borders, they want to keep using those same familiar methods. That consumer demand is reinforcing the push toward interoperability.

We are now seeing alignment between policymakers and payment providers. Domestic instant payment solutions are well established in many countries, and the next step is connecting them at a pan-European level. What was once a long-term ambition is increasingly becoming a practical reality.

Instant payments come with the promise of immediacy and control, yet adoption remains uneven across Europe. What are the main challenges that are still holding immediate payments back? 

Change in payments is never easy. Large-scale shifts challenge the status quo, and both organisations and individuals tend to resist disruption at first. Beyond the technical work, there is a need to change customer habits and internal mindsets. Companies must be willing to invest, and that takes time and strong internal sponsorship.

Adoption does not always happen at the same pace everywhere. In some markets, instant payments were slow to take off, which is why regulators have stepped in to accelerate progress through legislation. That is now reshaping the landscape. In other countries, there has simply been less urgency, because existing payment systems were seen as ‘good enough’. Overcoming that inertia requires both regulatory push and industry leadership.

Within payment service providers (PSPs), we have also seen a cultural shift. Historically, cards were viewed as a revenue-generating business line, while account-to-account (A2A) payments sat more on the operational side. That is changing. PSPs increasingly see the opportunity to combine card and account-based solutions, and they are bringing teams together around a more unified strategy.

In our case, being an early mover was critical. We were among the first solutions in Europe to adopt instant payments back in 2016. At the time, that was not an easy decision. We had to convince many stakeholders, and not all banks chose to participate at the start. Looking back now, it is clear that it was the right move. Today, more than 30 million users are part of the network, which is a strong foundation for broader adoption of instant payments.

Consumer behaviour is ultimately the strongest driver. Once people get used to fast, seamless person-to-person (P2P) payments, they start expecting the same experience in other contexts, such as ecommerce and point-of-sale (POS). We saw P2P as a gateway use case, helping to familiarise users with instant account-based payments and paving the way for wider commercial adoption.

The transition from a domestic payment scheme to a cross-border one is often presented as the desired next step. In reality, what are the hardest challenges in making that transition and turning domestic success cross-border?

This has been a challenge for us. We were early adopters of instant payments, but that has not been the case in every market. Some countries moved sooner than others, and much of the progress has ultimately been driven by regulation. The requirement for banks across Europe to connect to instant payment infrastructure is a major step forward.

When we launched our solution 10 years ago, it was designed as a domestic service. That was a natural starting point. In some European markets, there are domestic card schemes, but in Spain, there was no local card scheme then, and there still is not today. That created an opportunity to build a strong A2A ecosystem instead. Over time, as the domestic network grew, we began to see opportunities beyond our borders.

A key milestone was the expansion into Andorra, where the country’s banks joined our network in 2020. Although Andorra is a small market, it proved that a model that worked in Spain could also succeed elsewhere. Cooperation at a domestic level has been critical to our success, and we believe the same principle applies to cross-border interoperability.

That is why we began working on interoperability with Portugal and Italy. When you already have millions of users on domestic systems, connecting them becomes a logical next step. We started with P2P payments because it is the simplest use case. It does not require merchant integration or complex commercial models. It simply allows people to send money to each other when travelling, for example, to pay a guide or split an expense when they do not have cash.

The early signs have been encouraging. Even without major marketing, interoperability between Spain, Portugal, and Italy has already generated tens of thousands of transactions. That shows there is real demand once the capability exists.

Looking ahead, the main challenge is scale. Payments is a volume business, and most transactions are still domestic. Cross-border use cases are less frequent, but they matter because Europeans travel widely and expect the same payment experience abroad as they have at home. To make this sustainable, we need a model that is easy for additional markets to join. A more centralised or hub-based approach could help make interoperability more scalable and future-proof.

Another important area is merchant acceptance. Instant A2A payments at the point of sale are not yet as mature as card payments. Merchants expect the same reliability, user experience, and supporting services that cards provide. Building those capabilities is a key focus. Our approach is phased: start with P2P to build a large user base and familiarity, then extend into ecommerce and POS transactions as the ecosystem matures.

In your view, how will Europe’s instant payments future look like? Will there be a balance evolving between domestic schemes, pan-European initiatives, and global payment players?

I believe there will be room for multiple players. It is unrealistic to think that payment methods that have been in place for 60 or 70 years will simply disappear. International card schemes will remain important but pan-European A2A approaches will continue to grow alongside them. As interoperability expands, users will have more opportunities to pay each other across borders using familiar domestic solutions. Ultimately, customer preference and adoption will determine which methods gain the most traction.

Winning the customer interface is critical. Payment solutions that offer a strong, intuitive user experience and become part of people’s daily habits have a clear advantage. That is particularly relevant as we move into POS use cases. We are preparing to launch instant A2A payments at the POS, starting with selected merchants in Spain. This will be an important test of how quickly consumers adopt these solutions in physical retail environments.

Our approach is evolving as well. Initially, cooperation between banks ensured that our solution was integrated consistently across banking channels. At the POS, however, we are also introducing a branded wallet to compete more directly with established mobile payment players. The goal is to deliver a seamless experience using technologies such as NFC, which we believe will become the dominant in-store payment method across Europe, even though QR codes remain strong in some markets. In Spain, already, most contactless transactions are made using mobile devices, which reinforces this direction of travel.

Regulation will also play a decisive role. Beyond instant payment mandates, upcoming legislation such as PSD3 and the PSR aims to create a level playing field between A2A solutions and other payment methods. Features like variable recurring payments are essential for expanding use cases, and regulatory support in this area will make these solutions more competitive.

Finally, cooperation at a European level remains central to our strategy. We are working closely with peers across the region on the next phase of interoperability. The objective is to develop a more centralised model, potentially through a shared hub, that allows domestic systems to remain as they are while enabling seamless cross-border transactions. This would let users and banks connect internationally in much the same way they already operate at home, which is key to scaling adoption across Europe.

 

This interview is part of The Paypers` Money Movement in 2026: Trends in AI, Payments & Regulation Newsletter, a source of expert insights on the forces reshaping fintech, payments, and banking, covering fraud and financial crime, AI in fraud prevention and risk intelligence, real-time and cross-border payments, European payments sovereignty and the future of instant rails, stablecoins, agentic commerce, compliance and the evolving regulatory landscape, payments fragmentation driven by geopolitics and regulation, infrastructure bottlenecks in banking modernisation, the shift from generic scale to verticalised, value-added payment models, and digital wallets changing consumer payment behaviour – delivering a clear, data-backed view of what will shape strategy and innovation in 2026 and beyond.

Explore the other contributions in this Money Movement in 2026: Trends in AI, Payments & Regulation Newsletter series for more expert insights:

• McKinsey - Payments in transition: the forces shaping the future of global money movement
• Oliver Wyman - Navigating the future: how agentic commerce is redefining payments
• Triple-A - Stablecoins, the once-in-a-lifetime shift in payments
• UniCredit - Navigating regulatory change: compliance and the future of digital payments
• Unlimit - Why the future of digital wallets depends on interoperability at scale
• ACI Worldwide - Global orchestration for a real‑time, APM‑driven payments era
• The Paypers - 2026 fraud forecast: AI, deepfakes, and rising cybercrime risks

About the author

Fernando Rodríguez is Deputy Director of International Expansion at Bizum. He is also member of the Digital Euro Market Advisory Group, advising the Eurosystem on the design and distribution of a potential digital Euro and is a board member of EMPSA. Before joining Bizum in 2017, Fernando led key initiatives in commercial strategy, international expansion, and digital transformation.

 

 

About the company

With more than 30.6 million users, 111,000 merchants and 14,000 donation codes by the end of 2025, Bizum is the success story of the Spanish banking system: a joint project that forms part of its collaborative and innovative digital initiatives. With its payment services, based on instant SEPA transfers, and convenient, fast and secure digital identification via mobile phone, banks are expanding their offering to their customers.