European banks: possible answer to Libra by implementing an instant payment system

European banks: possible answer to Libra by implementing an instant payment system - fast payments

Reuters reported that by the 2020 the banks that operate in the European Union they may have a system for instant payments. According to what Reuters experts explained since 2017, real-time payments are only possible within the borders of the eurozone starting from 2017, only half of the however banks were able to join this initiative.

Despite this, Reuters noted that adoption could grow now that the stablecoin of Libra Facebook, however, could establish itself as a competitor on the fast payment system. 

The director of the EPC (European Payments Council) Etienne Goosse reiterated several times that regardless of the success of Facebook's Libra project, competition with technology companies is destined to last over time, for this reason banks need to evolve faster. Goosse pointed out also that large technology companies certainly have a significant advantage over the fragmented banking system. This is because large companies bring a global solution under a single brand and offer consumers everything they need in such a short time that European banks cannot afford. 

Goosse has also chosen to highlight that despite the immediate EPC payment standard has been adopted by as many as 60% of the lenders and by various payment services present within the eurozone, in order to be able to extend to all its banks, it will be necessary to wait for the end of 2020. 

Reuters notes that an instant payment system, however, is probably not sufficient to prevent the migration of a part of users towards new fintech initiatives, which are much simpler to use, because you just need an application to download to your smartphone, simple to install and use. Facebook's advantage over banks is also enormous because it can also benefit from using its own social platforms and chats to their advantage.