A revolution in payments! ECB grants non-bank payment service providers access to Eurosystem Payment Systems

On 27 January 2025, the European Central Bank (ECB) adopted Decision (ECB/2025/2, non-published yet), which regulates access for non-bank payment service providers (NB-PSPs) to central bank-operated payment systems within the euro area, including the TARGET system. The new rules aim to enhance the efficiency of the retail payments sector and establish uniform access criteria across the European Union.

Revolution in payments – what is changing?

Under the new regulation, NB-PSPs—comprising payment institutions and electronic money institutions—will be eligible to access Eurosystem-operated payment systems.

 This initiative seeks to improve the functioning of the payment market, particularly in facilitating instant payments, while also fostering competition and innovation.

The ECB emphasizes that access will be granted only to NB-PSPs that meet strict, non-discriminatory, objective, and risk-based criteria. These entities must comply with specific security requirements and provide statements confirming adherence to national regulations derived from the PSD2 Directive.

One of the key provisions of the decision is the introduction of holding limits for funds stored by NB-PSPs in central bank-operated payment systems.

The maximum amount allowed will depend on each NB-PSP’s settlement obligations and will be determined based on its historical transaction volumes. Exceeding these limits may result in financial penalties, and repeated violations could lead to expulsion from the payment system.

What restrictions does the ECB impose?

The decision also explicitly states that central banks will not offer safeguarding accounts to NB-PSPs, which are typically used to protect client funds. The ECB argues that such accounts could disrupt the banking system and pose risks to monetary policy transmission.

NB-PSPs currently accessing payment systems indirectly as “reachable parties” in TARGET will need to transition to direct participation by 31 December 2025. A transition period has been established to allow these entities to adjust to the new technical and operational requirements.

When will the new regulations come into force?

The new rules will take effect on 9 April 2025, aligning with the implementation deadline for changes introduced by Regulation (EU) 2024/886, which sets new standards for instant payments in euro.

The new regulations will come into force soon! Contact us and we will help you adapt your business to the new regulations and avoid sanctions.