During the final panel of the first day of EBAday, Rita Camporeale, vice chair of the European Payments Council, led a discussion on the recently launched OCT Inst scheme. Panelists included Daniele Astarita, principal solution consultant for real-time payments at ACI Worldwide; Damien Godderis, head of payments industry engagement at BNP Paribas; Xavier Herrero, manager of operations groups at CaixaBank; and Michael Knetsch, tribe lead for instant payments at Deutsche Bank.
The EPC’s new international instant credit transfer scheme (OCT Inst) officially launched in November 2023. Developed in response to regulators’ calls for better transparency, faster execution, and improved traceability, the scheme aims to benefit both customers and payment service providers (PSPs).
Godderis highlighted the scheme’s advantages for EU PSPs, emphasizing the importance of transparency in cross-border payments, which allows for proper handling by all parties involved. He also noted the predictability and cost-efficiency advantages of the OCT Inst scheme, which can optimize existing infrastructures. A key focus of the discussion was ensuring community-level adoption of the scheme.
Panelists acknowledged the potential benefits of OCT Inst but stressed that since it is optional rather than compulsory, illustrating relevant use cases is critical for driving adoption. Herrero pointed out the successful commitment of the community in Spain, stressing that collaboration typically leads to cost savings.
The panel engaged the audience to identify decisive factors for participation, receiving over 80 responses. Most respondents highlighted the importance of reach, transparency, business opportunities, and addressing customer needs. Camporeale then prompted the panelists to discuss the future landscape of cross-border payments.
Astarita referred to a recent International Monetary Fund tech note that suggests central bank digital currencies (CBDCs) could pave the way for more efficient cross-border payment systems. He expressed enthusiasm about leveraging new mechanisms and currencies for this purpose.
Godderis envisioned a coexistence of multiple systems, emphasizing the need for interoperability and the optimal use of varying schemes. Herrero noted that while not all payments will be instant, there is a shared goal among G20 nations to make cross-border transactions more economical and accessible, regardless of the digital asset involved.
Knetsch commented on the ongoing transition towards a closed-book system that fully integrates processes like Know Your Customer (KYC) and sanction screening. He expressed confidence that insights from Europe’s cross-border payment experiences could enhance the implementation of the OCT scheme, emphasizing the need to understand different use cases.
In closing, the panel examined a recurring theme from the discussions on digitization: the necessity of carving out time for innovation amidst an overwhelming regulatory landscape. While acknowledging that meeting compliance requirements consumes significant resources for banks, the panel agreed that OCT Inst presents a unique opportunity in Europe, as it builds upon existing infrastructures. To advance the scheme effectively, they concluded that it would be beneficial to first address potential barriers to adoption alongside highlighting its advantages.