Global: Irish Central Bank Unveils New Payments Strategy to Address Lag in Europe

The Central Bank of Ireland has introduced a comprehensive multi-year payments strategy, expressing concerns over the slow adoption of instant payments by banks in the country.

Deputy Governor Vasileios Madouros, addressing the BPFI National Payments Conference, emphasized the need for Irish banks to seize the opportunities presented by instant payments, pointing out the substantial changes and innovations in domestic payments over the past decade.

Madouros stated, “Despite the instant payments infrastructure being available since 2017, material providers of payment accounts in Ireland have not implemented it. For consumers and businesses, this is an unsatisfactory outcome.”

An initiative by Irish banks to launch a mobile app providing instantaneous account-to-account payments for POS and e-commerce transactions was abandoned last year due to the rapidly evolving payments landscape.

To address this inertia, the Central Bank has outlined four high-level priorities to be pursued until the end of 2030.

1. Integration with European Innovations: Banks are urged to ensure Irish consumers and small businesses benefit from payment innovations seen elsewhere in Europe, promoting the integration of emerging payment solutions with Europe and interoperability with other key markets.
2. Cash Availability: While embracing digital advancements, the strategy emphasizes that cash should remain widely available and accepted as a payment method to safeguard consumer and business choice.
3. Resilience and Security: Priorities include maintaining resilience and security in payments, crucial for building trust and ensuring the stability of the payment ecosystem.
4. Research and Analytical Insights: Embedding research and analytical insights will inform future policy decisions, fostering a strategic approach to the evolution of payments in Ireland within a European context.

Madouros concluded by highlighting the untapped benefits of technology in payments for domestic consumers and the broader economy. The National Payments Strategy aims to provide a coherent, system-wide approach for the future evolution of payments in Ireland, aligning with European standards.