The European Central Bank (ECB) has delayed the deadline for allowing non-bank payment service providers (PSPs) to access central bank-operated payment systems, such as the Target settlement system.
This six-month postponement is attributed to delays experienced by some EU countries in incorporating the necessary legislative changes into law. Initially set for implementation in April, the new Eurosystem policy follows the enactment of the Instant Payments Regulation, which amended the Settlement Finality Directive to expand access to designated payment systems for non-bank PSPs.
The revised access criteria for Target is intended to enhance the efficiency of the European retail payments market, encourage competition and innovation, and promote the adoption of instant payments across the EU.
“The amendment to the Target Guideline…is now expected to enter into force in October 2025,” stated the ECB. “The Eurosystem considers this postponement necessary to mitigate legal risks surrounding the eligibility of non-bank PSPs for access to Target, including T2 (for settling payments) and TIPS (for settling instant retail payments).”