Meeting the EU Instant Payment Deadlines: How White Label Payment Gateways Can Help

As Europe approaches the EU Instant Payments Regulation deadlines, new research reveals a concerning readiness gap among banks. While only 33% of banks are fully prepared, 41% admit they’re partially ready, and 25% indicate they are not prepared at all. With deadlines in January 2025 for receiving and October 2025 for sending instant payments, banks are under immense pressure to adapt their payment systems. For many, a white label gateway offers a streamlined solution to meet compliance needs without requiring extensive in-house development.

Key Challenges

The upcoming regulations require banks to meet strict standards, including the 10-second transaction window for instant payments and compliance with ISO 20022, the messaging standard across financial services. In addition, banks must implement stringent AML, sanction screening, and fraud detection processes, such as Verification of Payee checks. These compliance requirements demand advanced data management, real-time transaction monitoring, and robust security measures.

However, the survey reveals that many banks are struggling with these demands. Forty-two percent are prioritising risk and compliance investments, while others are focused on updating their payment engines. Yet, significant obstacles remain, particularly in adapting their infrastructure to meet regulatory standards and tackling fraud through effective pre-screening and real-time monitoring.

How White Label Payment Gateways Can Help

For banks lagging in readiness, white label payment gateways can be a vital tool in accelerating compliance. These solutions allow banks to integrate instant payment capabilities without developing costly, complex systems in-house. Here’s how white label gateways can support banks:

• Instant Compatibility: The gateways offer ISO 20022 compatibility out-of-the-box, easing the transition and ensuring standardisation in message formats across transactions.
• Enhanced Fraud and AML Compliance: With built-in compliance features, white label gateways include features for detecting and managing fraud. This allows banks to meet         EU AML and sanction screening standards more effectively.
  

  

• Cost-Efficient         Real-Time Processing: By handling high transaction volumes with rapid processing speeds, white label solutions enable banks to meet the mandated 10-second         transaction window.
• Scalability and Flexibility: These gateways are designed for easy integration, enabling banks to scale payment processing as needed without overhauling their entire infrastructure.

As regulatory deadlines approach, white label payment gateways offer a strategic, cost-effective way for banks to enhance their instant payment systems and meet EU requirements. For banks facing tight deadlines, these gateways provide the technological support to achieve compliance, reduce costs, and meet customer expectations.