Capgemini's Report: Not All Banks Ready for Instant Payment Regulation Set on October 2025

Capgemini's World Report Series 2025 | Payments report reveals that while instant payments and open finance are key to the future of banking, banks still have to prepare for upcoming regulations.

While EU payment regulations for banks are coming in 2025, many still need to prepare to handle instant payments from a technological perspective, according to the latest Capgemini's report. On the other hand, more than 65% of payment executives recognize the necessity of expanding instant payments infrastructure.

Many banks won't be ready, as they face modernization issues

Instant payments, which enable near-immediate transaction processing, are currently operational in over 80 markets globally, driving the transition towards a cashless economy. Real-time payments enable sending and receiving payments in a second at any place and time, reduce fees, and improve liquidity management.

77% of payment executives credit this shift to the growth of e-commerce and online shopping, as well as consumers' increasing preference for digital transactions over cash. Non-cash transaction volumes worldwide reached nearly 1.411 billion in 2023, and this figure is projected to reach 2.8 billion by 2028.

However, although the expansion of instant payment infrastructure is highly recognized by payment executives, few banks in the euro area are fully prepared for this change. With the Instant Payments Regulation requiring that all Eurozone payment service providers (PSPs) must accept instant payments by January 2025 and offer instant payment transfers from October 2025, European banks face growing pressure to modernize their system.

A major factor contributing to the instant payments delay in European banks is the incumbent banking systems, which cannot support the speed, scale, and complexity of instant payments. Modernizing these systems is time-consuming, and requires significant investment into technology, infrastructure, cybersecurity, and workforce training.

"Instant payments are a step towards a more digital and cashless economy. As both businesses and consumers are eager for these innovations, banks are working to meet the new demands. In Europe, financial institutions are trying to adapt to these expectations and stay compliant with the upcoming regulations. To do so, banks must invest in modernizing their core banking systems-the foundational infrastructure that supports key operations, from transaction processing to data management," said Giedrė Blazgienė, the CEO of Mano Bank, a specialized European bank.

Solution: open banking & advanced technology

The growth of open banking allows a more transparent and interconnected financial ecosystem, more personalized offers for customers, and secure sharing of financial data.

Over 50% of financial institutions' executives globally state that open finance and instant payments are their top priorities. Payment service providers (PSPs) that won't provide open finance, won't be able to offer simplified refunds, pre-approved loans, multi-bank aggregation, and the solutions businesses and consumers need.

"We are seeing pacesetters that are able to combine open finance, instant payments, and advanced technologies to create strong value propositions, adapt to customer segment needs, and earn customer loyalty and satisfaction. Banks that won't be able to make this strategic shift in time will lose their competitiveness in the long run." stated Giedrė Blazgienė.

Lithuania: European success story

Some European countries are already successfully implementing open banking and instant payments. In recent years, Lithuania has become the center for fintech innovation driven by a collaboration of government support, progressive regulatory frameworks, and a technologically proficient banking sector.

"As instant payments and open banking are expanding and the world is still struggling with the transition, the EU is intensely preparing, especially with new regulations on the way. Lithuania is vastly advanced in this field - 60% of payments in Lithuania are already instant payments, while the EU average is 15%. Alongside big banks that operate in the country, smaller ones like Mano Bank are also already offering instant payments", said Giedrė Blazgienė. "The future of banking lies in learning how to quickly adapt to the needs of customers and emerging trends. There is still time to prepare for January 2025 if banks act now."

Mano Bank
S. Moniuškos g. 27, LT-08115 Vilnius
Lithuania

ABOUT MANO BANK
Mano Bank is a financial institution dedicated to serving businesses and private clients across Europe with strong attention and personalised care. As the first bank in Lithuania to receive a specialised banking license in 2018, Mano Bank has been dedicated to providing business loans and payment services. By integrating digital technology with a cost-efficient approach, Mano Bank enables partners to save time and resources, allowing them to thrive in today's business environment.

This release was published on openPR.