ECB Extends Deadline for Non-Bank PSP Access to TARGET: What You Need to Know
The European Central Bank (ECB) has announced a significant six-month delay in the implementation of its new Eurosystem policy, impacting the landscape of instant payments in the European Union. This decision comes as several EU countries face challenges in transposing essential legislative changes into law.
Background on the Eurosystem Policy
The new policy, initially scheduled for introduction in April, follows the recent enactment of the Instant Payments Regulation. This regulation amends the Settlement Finality Directive, broadening participation in designated payment systems to include non-bank Payment Service Providers (PSPs).
Objectives of the New Policy
The revised access criteria for the TARGET system aims to:
- Enhance efficiency: Improve the functionality of the European retail payments market.
- Foster competition: Encourage innovation among payment service providers.
- Support instant payments: Increase the adoption of instant payment solutions across the EU.
Revised Timeline for Implementation
According to the ECB, the amendment to the TARGET Guideline is now expected to take effect in October 2025. The bank stated, “This postponement is necessary to mitigate legal risks regarding the eligibility of non-bank PSPs for accessing TARGET systems, including T2 for payment settlements and TIPS for instant retail payments.”
Conclusion
This delay underscores the complexities involved in harmonizing payment regulations across EU member states. As the ECB navigates these challenges, stakeholders must stay informed about ongoing developments related to the Eurosystem and its impact on the payments ecosystem.
