The European Central Bank (ECB) has postponed the deadline for non-bank payment service providers (PSPs) to access its central bank-operated payment systems, including TARGET, the system for large-value payments. Originally scheduled for April 2025, the new deadline has been extended to October 2025. This delay is due to challenges faced by certain EU member states in implementing the required national legislation in alignment with EU regulations.
This change follows the implementation of the Instant Payments Regulation, which amends the Settlement Finality Directive, enabling non-bank PSPs to access TARGET and other critical payment systems. The revised deadline gives EU member states additional time to adjust their legal frameworks to meet the new standards, ensuring that non-bank PSPs can participate fully in Europe’s payment infrastructure.
The extension of the deadline reflects the complexities of harmonising regulatory frameworks across member states. While the move is seen as an obstacle for the EU’s push to modernise and open up the payments market, it also provides more time for member states to ensure smooth integration.
This change is part of the ECB’s broader aim to foster competition and innovation within the European payments landscape, particularly through the adoption of instant payments. By allowing non-bank PSPs to directly access TARGET systems, the ECB hopes to increase efficiency, reduce costs, and stimulate innovation within the payments ecosystem.
As the new deadline approaches, stakeholders in the payments industry will need to continue coordinating efforts to meet the regulatory requirements. The shift is likely to have long-term implications for the future of European payment systems, as the ECB works towards its goal of a more inclusive, competitive, and efficient payments market across the EU.
