SEPA instant payments: understanding SCT inst and EPC schemes
In the era of digital transformation, speed and convenience of payments are becoming competitive advantages. SEPA is a revolutionary step in the evolution of European systems, enabling real-time transfers.
Since its launch in 2017, the system has been rapidly gaining momentum: according to EPC data, more than 529 million people live in the SEPA zone, making 52-60 billion electronic payments annually. In this article, we will look at how instant transfers work in the eurozone, what SCT Inst is, and the role of the EPC in the development of instant transactions.
What is SEPA
SEPA (Single Euro Payments Area) is a single euro payments area comprising 27 EU + 3 EEA + 8 non-EEA countries. In 2025 Serbia in negotiation process in the zone, and in 2024, Montenegro and Albania joined SEPA. The goal of the single zone is to standardise and simplify non-cash transactions in euros.
Key features of SEPA:
- Uniform rules for all participants.
- Standardised instruction formats.
- Reduction of cross-border transfer costs to the level of domestic transfers.
- Support for various types: credit transfers (SCT), direct debits (SDD), cards (SCD).
SEPA has laid the foundation for innovation, including SEPA Instant Payments.
What is EPC
EPC (European Payments Council) is the governing body of the European payments industry, responsible for developing common rules and standards for SEPA.
EPC functions:
- Coordination of the interests of banks, fintech companies and regulators.
- Developing payment schemes (e.g. SCT Inst).
- Ensuring the compatibility of payment systems within the SEPA zone.
- Promoting innovation (including EPC Instant Payments).
The EPC acts as a ‘platform architect’, ensuring that all SEPA participants operate according to the same rules.
What is the SCT Inst scheme?
SCT Inst (SEPA Credit Transfer Instant) is an instant payment scheme within SEPA that allows funds to be transferred between accounts 24/7/365 in seconds.
Here’s how SCT Inst works. The sender initiates the transaction via online banking or a mobile app. The system checks the availability of funds and compliance with the rules. The funds are instantly credited to the recipient’s account. Both parties receive confirmation in real time.
The average processing time is no more than 10 seconds. The platform is available 24/7. Only one currency is used to receive funds – the euro. SCT Instant Payment is not just about speed, but a new standard of convenience for businesses and individuals.
Key features of the SEPA instant payments 2025 rules
In 2025, EPC instant payments updated the SCT Inst scheme rules, enhancing security and scalability. Key changes:
- Enhanced authentication. Improved identification. The process of revoking SEPA Credit Transfers (SCT) and SEPA Instant Credit Transfers (SCT Inst) is being tightened — only one revocation will be allowed for each transaction.
- Extended limits. The current limit has been increased from €100,000 to €1 billion, while providers can set their own limits on the upper amount.
- Integration with Open Banking. API support for seamless interaction with fintech services and PISPs.
- Fraud protection. Implementation of machine learning algorithms to detect suspicious transactions in real time.
- The <10 seconds rule is introduced. There should be a response regarding the SCT Inst operation by 5 seconds. If no response is received within 7 seconds, a negative decision is made. The latest when the PSP initiator can receive a response regarding the Inst SCT operation is 9 seconds.
These rules are designed to ensure that SCT Instant Payment remains a reliable and scalable solution for the whole of Europe.
Benefits and use cases of instant payments
SEPA open up new opportunities for all market participants.
Individuals receive instant transfers to friends and family without weekends, pay for services (utilities, internet) on the day of application, and make emergency transfers, for example, in case of accidents or illnesses. Businesses gain access to faster capital turnover, reduced cash gaps, instant payments to suppliers and employees, and improved customer experience, such as refunds for cancelled orders.
Industry case studies:
- E-commerce. Instant refunds for cancelled orders.
- Logistics. Real-time payment for drivers' services.
- Freelancing. Payments to contractors immediately after project completion.
- Insurance. Emergency payments for insured events.
EPC Instant Payments also stimulate the development of innovative services – P2P transfers via messengers, automated transactions via smart contracts, integration with IoT devices, such as paying for parking via an on-board computer.
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Challenges of SEPA Instant Payments in 2025
Despite the progress in adopting SEPA, European banks face several persistent challenges in 2025:
- High implementation costs. Upgrading legacy systems to support real‑time processing demands substantial investment in technology and infrastructure.
- Operational complexity. Integrating instant payments with existing workflows requires reengineering processes and training staff, leading to operational disruptions.
- Fraud and security risks. Instant transactions leave less time for fraud detection, increasing vulnerability to scams and cyberattacks.
- Regulatory compliance. Keeping up with evolving EU regulations (e.g., PSD3) and cross‑border requirements creates administrative burdens.
- Profitability concerns. Thin margins on instant payments, combined with mandatory fee caps, strain revenue models, especially for smaller banks.
These hurdles require strategic planning and collaboration across the financial ecosystem to ensure sustainable growth of instant payment services.
Conclusion
SEPA Instant Payments is not just a technology, but a new paradigm for Europe’s payment infrastructure. The SCT Inst scheme, supported by the EPC, provides:
- speed – transfers in seconds;
- accessibility – 24/7, including holidays and weekends;
- security – PSD2 and GDPR compliance;
- standardisation – uniform rules for 41 countries.
In the context of growing digitalisation, SCT Instant Payment is becoming an essential tool for businesses and citizens who want to remain competitive. In the coming years, the functionality is expected to expand: support for new currencies, integration with CBDCs (central bank digital currencies) and global expansion beyond Europe.
Frequently asked questions
What distinguishes SCT Inst from regular SEPA transfers?
Speed is the main difference. Regular transfers in the euro area take about 1 day. If you use SCT Inst, the funds are credited to the user’s account almost immediately. Delays of less than 1 minute are possible.
Which banks support SEPA?
Most major banks in the SEPA zone are connected to the SCT Inst scheme. You can check the list of participants on the EPC website or with your bank.
Are there any fees for SEPA Instant Payments?
Yes, but its size depends on the client’s country of residence, the bank’s tariffs, and the transfer amount. Some banks offer free transfer limits, for example, up to €1,000 per month. For businesses, the commission may depend on the total turnover of funds.
Can I cancel an SCT?
No. Once confirmed, the payment is irrevocable. This is due to the instant crediting of funds to the recipient’s account.
Does SEPA support transfers in other currencies?
No. SEPA only work with euros. For other currencies, alternative solutions are required, such as SWIFT or local systems.
