The ECB went live with the SEPA Instant Payments system. UniCredit transferred money live in 2.5 seconds between different countries. What are Revolut‘s plans here?
Depends probably on Revolut’s payment processor. And it is not available across Europe - so far only in Austria, Estonia, Germany, Italy, Latvia, Lithuania, the Netherlands and Spain.
In The Netherlands only two banks support this fast transfer, ABN AMRO and ING.
ABN AMRO and ING indeed have started the instant payments as of Nov 21st. Together, they cover more than 50% of the market in the Netherlands, so I’d say Dutch have a significant head start in Instant Payments.
It would be good for Revolut to add SEPA Instant Payments support. With incomming payments, I would be able to top-up my card day and night in real time. Outgoing SEPA Instant Payments could be added as a premium feature.
Why a Premium feature? Instant (Fast) payments are available as standard and for free across all U.K. Banks and payment institutions. Sepa instant payments will become the norm.
Revolut should simply incorporate this into all of their accounts as standard practice. It will pretty soon become universal anyway and the default method of transfer. Revolut just need to be slightly ahead of the curve, as per their mission statement and raison d’etre.
Dont forget. The Receiver has to offer Instant Payments too.
In Germany, only one <-- Bank offers this now. Just one. Some Banks will follow in Summer 2018, the rest said “we will think about it in 2019 / 2020” …
The sender bank usually charge an extra fee for the SEPA Instant Payments transfer.
So, maybe it would be a good service for premium users only (sending)
But, yeah, i do want this feature too, for instant top-up 24/7
Why should there be a charge?
Instant SEPA transfers are free of charge in The Netherlands as it should be in the rest of the EU.
Actually, the fees banks have to pay for the clearing and settlement of SEPA instant payments are lower than regular SEPA transfers. At least this is what I remember vaguely from reading the white paper published by the European Payments Council. (I remember being astound that it wasn’t the other way round but I might be wrong here.) But real time transactions have higher requirements on the IT than batch transactions.
But fees for consumers are not regulated like they are for SEPA standard transfers. So some banks might decide to charge for instant transfers. I hope of course Revolut will not charge for instant transfers once they become available, but right now, turbo transfers are only offered for premium customers for free.
Netherlands is not Germany, and in Germany you have to pay a lot, everywhere.
For SEPA Instant Payments they charge (here in Germany) between 50 Cent and 9.99 Euro per transfer, depends on what account you have (there).
They dont want that you use instant, they push the own payment system, like “Giropay” and “Paydirekt” Giropay and Paydirekt is free for the sender, the receiver has to pay a fee. SEPA Instant, the charge the sender, not the receiver. Its just to earn money. But, doesnt matter, i really like, Revolut offers SEPA Instant Payments, just to top.-up instant 24/7
Hope N26 will have instant paymemt on short term notice.
I think the majority of EU banks will use SEPA instant transfers within the next 2 years. It should be free of charge, especially if more banks offer it.
So, a few days ago another Dutch bank (Bunq) joined the Instant Payments team.
I made a standard bank transfer from my Bunq account to ABN Amro and money was received within seconds.
They need a Bank Licence first. Ask again in 3-6 month
Why? Their 3rd party service providers can implement SCT inst. Also, SCT inst is not limited to banks. E-money licensed payment providers can offer services based on this technical framework.
(Having said this, I also think that SCT inst is not a priority for Revolut right now. That is okay with me.)
Which banks offer instant payments in Germany?
Right now, Hypovereinsbank (through their holding Unicredit, which implemented it in Italy.)
Sparkasse is working on it. Implementation for all 400 institutes should be done by February 2018.
As they said, Revolut want to cut the contract with the 3rd party provider. They want to do everything by themself. For this, they want to setup the Bank License first.
Sure, I just stumbled upon the “need”.