Irish banks launch Zippay to compete with fintech P2P services

Ireland’s three largest retail banks have joined forces to launch a new peer-to-peer (P2P) payments service designed to strengthen their position against fast-growing fintech rivals.

Irish banks launch Zippay

The service, known as Zippay, will be introduced through the mobile banking apps of Allied Irish Banks, Bank of Ireland and Permanent TSB, with the rollout beginning on 10 March.

Developed by European paytech provider Nexi Group, Zippay allows customers to send, request and split payments using mobile phone numbers stored in their contact lists.

The service will be embedded directly within participating banks’ mobile applications, enabling millions of users to access the functionality without downloading a separate app.

Embedded P2P Payments for Five Million Customers

The three banks collectively serve more than five million customers in Ireland, giving the service an immediate and substantial potential user base.

The phased rollout means customers will gradually see the feature appear in their banking apps over the coming weeks.

Once fully operational, users will be able to transfer up to €1,000 per day and request up to €500 per transaction.

Payments can be initiated simply by selecting a contact whose mobile number is linked to a participating account.

Unlike standalone digital wallets, Zippay operates directly through customers’ bank accounts.

This removes the need for pre-funded balances or external applications, a design choice intended to minimise friction and encourage rapid adoption.

The system has also been structured as an open platform. After the initial launch phase, the service will be available to other financial institutions offering Irish consumers IBAN-based accounts and mobile banking applications.

Banks Respond to Rising Fintech Competition

The launch reflects growing pressure on traditional banks from digital challengers such as Revolut, which has gained significant market share in Ireland by offering convenient mobile payments and instant transfers.

Peer-to-peer payment tools have become a central component of modern banking apps, particularly among younger consumers who increasingly expect the ability to split bills, reimburse friends or send money instantly from their smartphones.

Irish banks previously attempted to develop a collaborative payments platform through a project called Synch Payments.

That initiative was abandoned in 2023 after delays and technological hurdles.

Zippay represents a reconfigured approach, focusing on direct integration into existing banking apps rather than launching a separate standalone product.

Part of Europe’s Shift Toward Account-to-Account Payments

The Zippay project also aligns with a broader European trend toward account-to-account (A2A) payment solutions, which allow funds to move directly between bank accounts without passing through card networks.

By leveraging IBAN-based transfers and mobile authentication, such systems promise faster settlement and lower transaction costs compared with traditional card-based payments.

For banks, the stakes extend beyond convenience. Maintaining relevance in everyday consumer payments is increasingly vital as fintech companies expand their presence across Europe’s digital financial services landscape.

If widely adopted, Zippay could help Irish banks reassert their role in everyday peer-to-peer payments.

Whether it can match the scale and network effects of established fintech platforms, however, will depend on how quickly consumers embrace the new service and whether additional banks join the ecosystem.