The SEPA Payment Account Access (SPAA) scheme is introducing a new era for open banking by providing financial incentives for banks to participate and expand this innovative banking approach. The scheme, which enables banks to charge for new open banking functionalities, could significantly boost Account-to-Account (A2A) payments, positioning them as a prime alternative to traditional card payments for online transactions.
This move, endorsed by the European Payments Council, combines SEPA Instant Credit Transfers (SCT Inst) with open banking, finalizing the puzzle pieces for an open, pan-European payment method.
Joe Morley, EU CEO and General Manager of TrueLayer, shared insights on how SPAA is set to invigorate the European open banking ecosystem. The scheme’s financial model encourages banks to monetize APIs and collaborate with fintechs to develop advanced, digitally native account-to-account payment services. This approach is a significant departure from the PSD2, which many banks viewed merely as a compliance requirement, limiting their drive to expand beyond basic open banking services.
New Features and Future Expectations
One of the SPAA scheme’s most intriguing features for both scheme participants and end-users is Dynamic Recurring Payments (DRP). This feature enables customers to establish recurring payments with variable parameters, promising a broad range of new use cases and simplifying the online checkout process. Additionally, the Payment Certainty Mechanism introduced by SPAA could enhance in-store open banking payments by assuring merchants of immediate fund transfer guarantees.
Looking forward, the combination of widespread instant credit transfers and open banking, facilitated by the SPAA scheme, presents a clear path towards an open and sustainable European payment method. With demand from Third Party Providers (TPPs) and their merchant clients already evident, the scheme’s successful implementation could see the first SPAA transactions by as early as 2025, signaling a significant shift in the European payment landscape.
