Evolving customer expectations, global standardisation efforts and regulatory  pressure from the G20 Roadmap for cross-border payments are driving the  implementation of One-Leg Out Instant Credit Transfer (OCT Inst) solutions in  Europe. These solutions are designed to enhance cross-border payments by  leveraging existing domestic real-time infrastructures, particularly within the  Single Euro Payments Area (SEPA). 

The Euro Banking Association (EBA) and its Expert Group on Cross-Border  Payments (EGXP) explain in a new white paper why OCT Inst is a promising  approach and give payment service providers (PSPs) in Europe a handbook for  how to get started with their own implementation. To meet the targets cost,  speed, access and transparency set by the G20 Roadmap by 2027, PSPs should  initiate their individual implementation planning immediately and join forces to  kick off work on the necessary collaborative deliverables.  

Key findings of the white paper include: 

• Customer-centric imperative: Consumers, SMEs, corporates and  PSP customers alike demand faster, cheaper, more transparent, and  reliable cross-border payment services. OCT Inst is able to address  these needs by reusing SEPA instant payment building blocks. 

• Strategic opportunity: OCT Inst offers a fit-for-purpose, 24/7/365  solution that is user-friendly, easy to implement and aligned with global  initiatives, such as Swift CBPR+.  

• Challenges to address: Successful rollout requires overcoming  hurdles such as limited reach and the need for harmonised market  practices. A consistent end-to-end experience across payment  corridors is essential. 

• A call to action: PSPs must act now to meet the 2027 deadline. 

Recommendations for PSPs include joining a pan-European frontrunner group  to build critical mass and reach, beginning preparations for implementation, in  line with the EPC OCT Inst Scheme Rulebook and compliance requirements, 

and to start working on pan-European market practices that help ensure that  OCT Inst delivers a better cross-border payment experience than existing  solutions.  

Simon McConnell, Chair of the EGXP, says: “The discussions in the EGXP  group have turned from what could potentially be delivered to framing some  concrete next steps for European PSPs, leveraging the strengths of the OCT Inst  Scheme to deliver against the G20 objectives of transparency, speed, cost and  access. The next step is in our hands and I look forward to exploring with the  group how to further support the call to action formulated in this white paper.” 

EBA Expert Group on Cross-Border Payments 

“Get ready for OCT Inst! An EBA white paper on why and how to start planning  for implementing OCT Inst now” is available for download on the EBA website.