Eurosystem eyes up alternative payment solutions in latest retail payments strategy update

Eurosystem’s Retail Payments Strategy Update
- Priorities:
  - Digital euro development
  - Instant payments
  - Cross-border payments
Objectives of Retail Payments Strategy
- Develop pan-European solutions for point-of-interaction (POI) payments
- Strengthen the Single Euro Payments Area (SEPA) through full instant payment deployment
- Address challenges to European sovereignty in the payments market due to post-2020 developments
Legislation Core Goals
- Create a European solution for POI payments to reduce reliance on international card schemes and big tech providers
- Introduce digital euro to complement existing capabilities
- Promote technological advancements in cross-border payments for both retail and wholesale contexts
Recent Updates
- Focus on alternative payment solutions for resilience, especially during network disruptions
- Ensure availability of “fallback options” for payment service providers (PSPs)
- Discussing enabling direct access to payment systems for non-bank PSPs
Collaboration and Harmonization Efforts
- Discussing harmonization of pan-European electronic identity (eID) and electronic signature (eSignature) services
- Exploring possibilities through the revised Settlement Finality Directive (SFD) and updated eIDAS regulation
Progress in Achieving Retail Payments Strategy
- SEPA Instant Payments mandate implementation
- Increased dialogue with the fintech sector
- Entering the preparation phase for the digital euro project