The European Central Bank postpones the deadline for non-bank payment service providers to access TARGET, citing legal and regulatory challenges
Highlights:
- Regulatory Hurdles: The ECB postponed the deadline due to delays in legislative changes across EU member states.
- New Timeline: The amendment to the TARGET Guideline is now expected to take effect in October 2025.
- Market Impact: The delay affects non-bank PSPs seeking direct access to central bank-operated payment systems for instant transactions.
Story Summary: The European Central Bank (ECB) has pushed back the deadline for non-bank payment service providers (PSPs) to access the TARGET payment system, originally set for April 2025. The postponement stems from delays in implementing necessary legislative changes across EU countries. The new policy, part of the Instant Payments Regulation, aims to broaden participation in designated payment systems, fostering competition and innovation in the European payments landscape.
The ECB now expects the revised TARGET Guideline to come into force in October 2025, ensuring legal clarity for non-bank PSPs seeking access to T2 (for settling payments) and TIPS (for instant retail payments).
