Ireland’s three domestic banks are launching an instant mobile payments service on their apps this week.
The Zippay service will be rolled out on a phased basis from Tuesday with potential to reach more than five million eligible customer accounts of the three retail banks, according to the Banking and Payments Federation Ireland (BPFI), which is co-ordinating the project.
Customers will be able to send, request and split payments instantaneously with Zippay by using the mobile numbers of contacts who are also using the service.
It is aimed at taking on competition such as Revolut, by far the market leader in instant payments in the State with more than three million customers, and German-headquartered N26.
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“A key benefit of this payment service is that it is being delivered through customers’ existing mobile banking apps and therefore comes with all the same high levels of security, protection, and digital safety,” said BPFI chief executive Brian Hayes.
“This avoids the need for topping up a digital wallet or downloading and using a separate app. Zippay will use mobile numbers saved within customers’ contact lists to identify who else uses Zippay, making it seamless to transfer money without needing to set up new payees or know their IBAN, BIC, or account numbers. It promises to be a simple, speedy and secure experience.”
Customers will be able to send as much as €1,000 per day as well as request up to €500 per transaction.
The service will link to the primary account of individuals by default. However, customers will be able to change it to attach to another account, sources with knowledge of the project have said.
While it may take a week or so for the service to appear on the apps of all customers that use mobile phones for banking, money can still be transferred to their accounts in the meantime, they said.
AIB, Bank of Ireland and PTSB announced last September that they had resurrected plans to provide an instant mobile payments service and aimed to have it up and running early this year.
A previous attempt by the banks to introduce an instant payments system, which started in 2020 and was abandoned in 2023, was based around developing a new app and a joint venture company.
It faced a string of setbacks, including delays in obtaining approval from competition and financial regulators and the withdrawal of one of its founding members, KBC Bank Ireland.
Zippay is not a joint venture, rather a service provided by the leading European paytech group, Nexi, to the banks that is being integrated into their existing mobile apps.
After the initial launch, Zippay will be offered on a non-discriminatory basis to all financial institutions that provide Iban account services and a mobile app to Irish consumers. Nexi said it would manage the integration of eligible financial institutions that wish to join the service.
The payments landscape has continued to evolve rapidly since the Synch project was dropped, including European banks having to join the Single Euro Payments Area (Sepa) instant payments system early last year.
But while Sepa Instant Credit Transfer (SCT Inst) requires use of an Iban, or 22-character international bank account number, Zippay payments can be made through mobile contacts, making transactions easier.
As Zippay rolls out, eligible customers of AIB, Bank of Ireland and PTSB will receive information through emails and in-app messages.
The Zippay.ie website has detailed information on the service and how it works. Each bank also has their own online Zippay information page.
