Instant Payments, Instant Protection: What Credit Unions Need to Know About IPR
Kira Magennis, Head of SEPA Payments at Payac, delivered a standout session titled Instant Payments, Instant Protection. The session focused on the sweeping changes brought about by the EU’s new Instant Payments Regulation (IPR) and what it means for Credit Unions across Ireland.
With compliance deadlines approaching fast, this session was a vital briefing on what’s required, how to prepare, and why instant payments are more than just a technical upgrade they’re a cornerstone of modern, secure member services.
What Is the Instant Payments Regulation (IPR)?
Adopted by the European Parliament and Council in March 2024, the IPR mandates that all payment service providers (PSPs) must offer instant credit transfers in euro across all 27 EU member states by October 2025.
But it’s not just about speed. IPR also enforces strict conditions around:
- Equality of Charges – Instant payments must cost the same as standard SEPA transfers
- Verification of Payee (VoP) – Mandatory confirmation of recipient details before payment
- Simplified Sanctions Screening – Daily checks against sanctions lists for all users
Failing to comply could mean not only penalties, but also a loss of trust and competitiveness in an increasingly real-time financial ecosystem.
Sending and Receiving Instant Payments
To support implementation, Credit Union IT Service Providers (ITSPs) are now offering a robust set of open APIs. These APIs allow credit unions to:
- Validate payments in real time
- Check account reachability
- Submit and confirm transactions securely
- Process incoming payments 24/7/365
Security is built into every step from API architecture to transaction-level encryption ensuring instant doesn’t mean insecure.
Instant Protection: Mitigating Risk in Real Time
Alongside instant processing, the regulation places a strong emphasis on fraud prevention and risk management.
Key Protective Measures Include:
- Anti-Fraud Scoring (via Nexi): Each outgoing payment is given a real-time risk score. If the score is too high, the transaction is automatically blocked.
- Verification of Payee (VoP): In partnership with Banfico, Payac and Wellington IT will deliver VoP services for credit unions, helping reduce misdirected or fraudulent payments by verifying recipient names in advance.
- Limits and Controls: Credit unions can set daily or per-transaction limits, not both. Ensuring member protection while remaining compliant.
- Automated Recalls: Both incoming and outgoing instant payments can be recalled using the same standards as SEPA Classic, backed by Payac escalation support where needed.
Industry Support and Onboarding
Kira also shared details on how Payac is supporting the sector:
- Phased onboarding will take place through to July, allowing credit unions to gradually adopt the service
- Friends and Family mode will be available for soft launches
- Payac continues to represent credit unions on industry panels and working groups, ensuring their voice is heard and needs understood
Final Thoughts
he message from the session was clear: Instant payments are no longer optional they’re the new standard. But they also represent an opportunity: to deliver faster, more secure services, meet rising member expectations, and position credit unions for future growth.
With the right controls in place and the right partners by their side, Credit Unions can embrace this transformation with confidence.
To learn more about how Payac is helping Credit Unions prepare for IPR, contact us HERE.