Spanish fintech Devengo has secured certification as the first non-bank institution under the European Payments Council’s One-Leg Out Instant Credit Transfer scheme, marking a significant milestone in European payment infrastructure. The account-to-account payment specialist now holds the ability to facilitate instant cross-border transactions between European instant payment systems and those in other countries, a capability previously reserved exclusively for traditional banks.
This development comes as the European payments landscape undergoes rapid transformation, with instant payment adoption accelerating across the continent. Devengo’s certification effectively breaks the banking monopoly on international instant payment routing, potentially reducing costs and improving speed for businesses conducting cross-border transactions. Payment service providers, fintech platforms, and merchants relying on A2A payment rails stand to benefit from increased competition in this space.
The move signals growing regulatory acceptance of non-bank financial institutions handling critical payment infrastructure, which could accelerate similar certifications across Europe.
FXnCO Insight
Expect downward pressure on cross-border instant payment fees as non-bank competition enters this previously bank-dominated corridor.
Source: Finextra