The EBA and its EGXP have launched a new whitepaper on OCT Inst implementation and ways in which PSPs in Europe can get started with the initiative.
Following this announcement, the new whitepaper explained why OCT Inst represents a promising approach and gives payment service providers (PSPs) in Europe a handbook for improved ways to get started with their own implementation.
In addition, to meet the targets of cost, speed, access, and transparency set by the G20 Roadmap by 2027, PSPs should initiate their individual implementation planning immediately, as well as join forces in order to kick off work on the necessary collaborative deliverables.
More information on EBA and its EGXP’s new whitepaper
Evolving customer expectations, global standardisation efforts, and regulatory pressure from the G20 Roadmap for cross-border payments represent some of the challenges that are driving the implementation of One-Leg Out Instant Credit Transfer (OCT Inst) solutions in Europe. These solutions were developed in order to optimise cross-border payments through the process of leveraging existing domestic real-time infrastructures, particularly within the Single Euro Payments Area (SEPA).
The newly launched whitepaper has listed several key findings, including customer-centric imperative (with users, SMEs, corporates, and PSP customers alike demanding faster, cheaper, more transparent, and reliable cross-border payment services, OCT Inst will address these needs by reusing SEPA instant payment building blocks), new opportunities (OCT Inst is expected to offer a fit-for-purpose, 24/7/365 solution that is user-friendly, easy to implement, and aligned with global initiatives, including the Swift CBPR+), as well as challenges that are needed to be addressed (as a successful rollout requires overcoming hurdles such as limited reach and the need for harmonised market practices, a consistent end-to-end experience across payment corridors is needed), and a call to action (PSPs must act now in order to meet the 2027 deadline).
In addition, recommendations for PSPs also include joining a pan-European group in order to develop critical reach, alongside the beginning preparations for implementation and in line with the EPC OCT Inst Scheme Rulebook and compliance requirements. PSPs are also required to start working on pan-European market practices that would help ensure that OCT Inst delivers an improved cross-border payment experience than existing solutions.
