TrueLayer calls on the EU to improve payments with open banking

TrueLayer is calling on the EU to focus on improving European payments by combining open banking with instant payments.

The open banking payments network released a report outlining just how policymakers can expand on the rules already laid out in the Payments Services Regulation (PSR) to help both businesses and consumers when it comes to accessing safer, faster and more convenient payments.

Recommendations in the report include focusing on creating better user experiences by removing obstacles in the open banking payment journey, and lowering the cost of instant payments for consumers by keeping fees low.

“European policymakers have laid important foundations and infrastructure, in PSD2 and SEPA Instant (Single Europe Payment Area), for faster, secure, and more cost-effective payments experiences for customers and businesses. But more work is needed,” TrueLayer EU CEO Joe Morley said.

The rest of the world is moving fast, Morley explained, specifically referencing the monopoly Pix payments have in Brazil, exceeding credit and debit card payments combined.

“That is the model that the EU should follow in order to keep up: a modern, open, and dynamic system that promotes competition and works for both consumers and merchants,” Morley added.

The report and recommendations outline a blueprint for creating a domestic payment option in the EU that will act as “an alternative to the card duopoly”.

TrueLayer specifically highlighted the need for the Instant Payments Regulation to be finalised soon to improve consumer access to SEPA Instant across Europe, and open banking changes in the PSR to focus on improving the user experience.

Introduced in 2017, SEPA Instant is a pan-European network that, as the name suggests, enables instant bank transfers across Europe, enabling euro transactions to take place in seconds through open banking.