ECB sets back deadline for non-bank PSP access to Target
The European Central bank has postponed a deadline for allowing non-bank payment service providers (PSPs) to access central bank-operated payment systems, including the Target settlement system.
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The ECB says the six-month postponement is due to delays in some EU areas countries in transposing the necessary legislative changes into law.
Initially set for introdcution in April, the new Eurosystem policy follows the enactment of the Instant Payments Regulation, which amended the Settlement Finality Directive to broaden the scope of participation in designated payment systems to include non-bank PSPs.
The broader access criteria for Target was aimed at enhancing the efficiency of the European retail payments market, fostering competition and innovation in the European payments landscape, and supporting the uptake of instant payments in the European Union.
"The amendment to the Target Guideline...is now expected to enter into force in October 2025," states the ECB. "The Eurosystem considers this postponement necessary to avoid legal risks concerning the eligibility of non-bank PSPs to access Target, including T2 (for settling payments) and TIPS (for settling instant retail payments)."
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