One-Leg Out Instant Credit Transfer (OCT Inst) payments go live

The European Payment Council’s (EPC) One-Leg-Out Instant Credit Transfer scheme (OCT Inst) has gone live.

OCT Inst payments go live

The launch of the new payment scheme of the European Payments Council (EPC) designed for international instant credit transfers marks a significant development for the EPC as it is the EPC’s first venture outside of the geographical scope of the Single Euro Payments Area (SEPA).

The OCT Inst scheme is a cross-currency payment scheme to support the processing of incoming and outgoing international instant account-to-account based credit transfers.

It is distinct from other EPC payment schemes as it is the first EPC scheme which covers exclusively the Euro Leg of international instant credit transfer entering or leaving the geographical scope of SEPA.

“The new One-Leg Out Instant Credit Transfer (OCT Inst) scheme is the first non-SEPA scheme delivered by the EPC, targeting international (instant) account-to-account payment transactions,” comments Giorgio Andreoli, Director General of the EPC.

“The OCT Inst scheme leverages the large and growing base of European PSPs already supporting the SCT Inst scheme (currently 62% of PSPs in SEPA), adding on top of the speed, low cost and reachability already provided by the SCT Inst scheme the transparency and traceability required by the G20 and the Financial Stability Board.

The EPC is proud to release at the right point in time an innovative scheme with a strong market fit, as we believe that a multilateral scheme approach could be a game changer for International instant payments.”

The OCT Inst scheme brings the benefits of SEPA payment schemes to international payments. It also responds to the European Commission’s Retail Payments Strategy on strengthening the international role of the euro, and to G20 objectives on international cross-border payments.

The new EPC scheme is the result of a community-driven approach and allows Payment Service Providers (PSPs) in charge of the Euro Leg to make use of existing SEPA payment ‘rails’ – including procedures, standards and agreements with clearing and settlement mechanisms (CSMs) – that are reflected in arrangements which PSPs are already familiar with, such as the SEPA Instant Credit Transfer (SCT Inst) scheme and existing SEPA payment infrastructures.

Under the OCT Inst scheme, PSPs in SEPA can process incoming and outgoing international credit transfers through highly automated funds transfer systems available in the Euro Leg and via similar systems in the respective non-Euro Leg countries or jurisdictions.

This gives PSPs the opportunity to offer their customers international payments leveraging the instant execution, low-cost and broad reachability already available in SEPA area, adding on top the transparency and payment status traceability required for international transactions.

Marianne Demarchi, Chief Executive of Swift in Europe, emphasised the importance of this development saying, “Interoperability is at the heart of everything we are doing at Swift to achieve our strategy of instant and frictionless payments for all, and it will be key to achieving the G20’s goals for cross-border payments.

The EPC’s OCT Inst scheme is a positive step that will enhance the user experience for payers in Europe, but also all around the world.”