Payments in the EU: Building Better User Experience

This report examines the development of user experience in the context of open banking and SEPA Instant payments in the European Union. It outlines the significant resources being allocated to establish a competitive payment system that can rival existing US card companies and technology giants. The report emphasizes the role of open banking, which has become a recognized payment method under the revised Payment Services Directive (PSD2), facilitating account-to-account transactions. It details the importance of user experience, highlighting five key building blocks: security, low friction, speed, low cost, and pan-European coverage. The report discusses the current state of SEPA Instant payments, noting their gradual adoption and the need for improved user experience to encourage wider acceptance among consumers and businesses. Additionally, it addresses the implications of upcoming regulations, such as the Payment Services Regulation (PSR) and Instant Payments Regulation (IPR), on enhancing security and user experience in the payments landscape.