The EBA and EGXP have released a new whitepaper detailing the implementation of OCT Inst and providing guidance for payment service providers (PSPs) in Europe.

This whitepaper highlights why OCT Inst is seen as a promising approach, offering PSPs a step-by-step guide to initiating their own implementation.

To meet the goals outlined by the G20 Roadmap for cross-border payments by 2027—cost efficiency, speed, accessibility, and transparency—PSPs are encouraged to begin planning their individual implementations and collaborate on essential joint tasks.

Details of OCT Inst Implementation

The implementation of OCT Inst solutions is driven by evolving customer expectations, efforts towards global standardization, and regulatory pressures from the G20 Roadmap. These solutions aim to enhance cross-border payments by utilizing existing domestic real-time infrastructures within SEPA.

The whitepaper identifies several key points: a user-centric imperative (addressing the needs of customers, SMEs, corporates, and PSP users for faster, cheaper, more transparent, and reliable cross-border payment services through OCT Inst), new opportunities (OCT Inst is expected to provide a 24/7 solution that is easy to implement and aligns with global initiatives such as the Swift CBPR+), challenges (successful implementation requires overcoming limited reach and ensuring harmonized market practices for a consistent end-to-end experience across payment corridors), and a call to action (PSPs must act now to meet the 2027 deadline).

Additionally, PSPs are advised to join a pan-European group to develop critical reach, prepare for implementation in line with the EPC OCT Inst Scheme Rulebook, and comply with relevant requirements. They should also start working on pan-European market practices to ensure that OCT Inst offers an improved cross-border payment experience.