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The EU’s financial watchdog has decided to press pause on an imminent payments compliance deadline, stating that it will not become actionable until next year.
The European Banking Authority (EBA) has published its final draft Implementing Technical Standards (ITS) on the reporting of charges for credit transfers, payment accounts and the share of rejected transactions under the Instant Payment Regulation (IPR).
Originally scheduled for April 2025, the first round of harmonised reporting from payment service providers (PSPs), including banks, payment institutions and e-money institutions, has been pushed back by 12 months to April 2026.
The EBA’s decision follows a public consultation where concerns were raised over the feasibility of meeting the original deadline.
The ITS bring in standardised reporting templates, instructions and methodologies that PSPs will need to use when submitting data to their national competent authorities (NCAs).
This data will then be used by the European Commission to monitor compliance with the SEPA Regulation and assess whether instant payments remain affordable compared with regular credit transfers.
Managing the burden
The EBA acknowledged the need to collect accurate and comparable data while minimising the reporting burden on financial institutions.
It focused on charges for regular and instant credit transfers (which are broken down by transfer type, payment user category and initiation channel), charges for payment accounts and the share of instant transfers rejected due to EU sanctions compliance.
The delay also gives the European Commission time to adopt the EBA’s final ITS, while the EBA finalises the data-point model, XBRL taxonomy and validation rules, which the industry will need to implement.
Until the first harmonised reporting in 2026, regulators across the member states have been advised not to penalise PSPs for failing to submit data.
In addition, the EBA urged authorities to discourage unharmonised reporting, as incomplete or inconsistent data could hinder regulatory analysis.
To further refine the reporting framework, meanwhile, the EBA has made adjustments based on feedback, including revised reporting tables and better alignment with ECB payment statistics.
The EBA will now submit its final draft ITS to the European Commission, with the data-point model and validation rules expected by Q2 2025.
A relief for PSPs
The decision to delay will no doubt have been met with positivity from the banking and payments industry, as firms navigate the IPR and its various incoming compliance requirements.
The 12-month delay provides more time to implement a complicated taxonomy, data-point model and validation rules, which should increase the opportunity for coherent compliance with the rules.
The delay also reduces the risk of rushed or incomplete reporting and allows firms to prepare more effectively.
In the short term, the delay also reduces the compliance burden, as PSPs will not face enforcement action or unnecessary regulatory pressure until the framework is fully in place.
However, the reprieve is not eternal. PSPs will still need to invest in new reporting systems and processes before the 2026 deadline, which will inevitably mean technology upgrades, staff training and additional costs.
