Zippay is an in-app service offered through the banks’ existing mobile banking systems.
It will begin rolling out on a phased basis this week with potential to reach the more than five million eligible customer accounts of the three retail banks.
It is expected that the person-to-person mobile payments service being introduced by AIB, Bank of Ireland and PTSB will transform the payments environment in this country for those who do not have an account with a neo-bank such as Revolut.
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The new system will mean bank customers will be able to send, request, and split payments instantaneously with Zippay by using the mobile number of their contacts who are also using the service.
Zippay is being delivered by leading European PayTech Nexi, and following this week’s launch will be offered to all financial institutions that provide Iban account services and a mobile app to Irish consumers.
Making it seamless to transfer money without needing to set up new payees
Brian Hayes, chief executive of the banking representative body Banking and Payments Federation Ireland, said customers will begin to see Zippay appear automatically in their personal banking apps on a phased basis from this week.
“Zippay will provide a quick and easy way to send and receive money or split payments or bills with friends, family and contacts who are also Zippay users. Customers will be able to send up to €1,000 per day as well as request up to €500 per transaction,” he said.
Mr Hayes said the new payment service is being delivered through customers’ existing mobile banking apps.
This mean “it comes with all the same high levels of security, protection and digital safety”.
Mr Hayes said consumers would therefore avoid the need for topping up a digital wallet or downloading and using a separate app.
“Zippay will use mobile numbers saved within customers’ contact lists to identify who else uses Zippay, making it seamless to transfer money without needing to set up new payees or know their Iban, BIC, or account numbers. It promises to be a simple, speedy and secure experience,” he said.
The technology for the new in-app service is coming from Nexi, a European pay-tech company and one of the world’s leading payment technology providers.
It already provides digital payment solutions for some of the Irish banks.
The instant payments offering from the banks comes after they were forced to pull the plug on previous plans to launch their own bespoke instant payments app at the end of 2023.
That joint venture initiative was called Synch Payments.
The payments landscape has changed radically
It had been hit by a bombshell in July 2023 when the Central Bank said the planned new service needed to be authorised by it.
Now the three mains banks have bought an instant payments technological solution that will allow them to finally roll out a rival to Revolut and N26 years after these digital banks have hoovered up customers.
The payments landscape has changed radically rapidly since the Synch project was dropped by the banks.
European banks linked into the Single Euro Payments Area (Sepa) instant payments system early last year.
However, Sepa Instant credit transfers require the use of an Iban, or 22-character international bank account number.
Zippay payments, in contrast, can be made through mobile contacts, making transactions easier.
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