Irish Banks Unite to Launch Zippay, Competing with Revolut

Three major Irish banks—AIB, Bank of Ireland, and Permanent TSB (PTSB)—are collaborating to introduce a new instant payments service called Zippay. This initiative aims to compete directly with popular fintech services like Revolut, two years after a previous attempt to launch a similar service was abandoned.

Zippay is set to launch in early 2024 and will serve the combined customer base of approximately 5 million users across the three banks. The service will be integrated into the banks’ existing mobile applications, allowing customers to send, request, and split payments using just mobile numbers. Users will be able to transfer up to €1,000 daily and request payments of up to €500 per transaction.

Streamlined Integration and Customer-Centric Design

The decision to incorporate Zippay into the banks’ current apps is expected to help avoid the regulatory challenges that plagued the earlier initiative. Customers have long expressed a need for faster payment solutions, as traditional banking methods can take several days to process transactions. This demand has been capitalized on by digital banking services such as Revolut and N26, which have attracted millions of users in Ireland.

According to the Banking & Payments Federation Ireland (BPFI), Zippay will be delivered in partnership with the Italian firm Nexi. BPFI Chief Executive Brian Hayes highlighted that the service was developed in direct response to customer feedback. “Eligible customers will automatically be enrolled to Zippay, which will appear in their personal banking app once the service is launched next year,” he stated. The feature will utilize mobile numbers stored in users’ contact lists, eliminating the need to set up new payees or know account details such as IBAN or BIC numbers.

Learning from Past Challenges

In 2020, AIB, Bank of Ireland, PTSB, and KBC launched a joint venture to establish Synch Payments, an industry-wide banking payments app also developed by Nexi. Despite initial optimism, the project faced significant setbacks. The Competition and Consumer Protection Commission initially rejected their application due to insufficient information, although it was eventually approved in June 2022. Further delays led to the eventual abandonment of the project in 2023, after an investment of €17 million.

Zippay is viewed as a more straightforward rollout, with no significant delays anticipated, given Nexi’s experience operating a similar system in Italy. If successful, Zippay will provide a long-awaited service for Irish customers and create competition for younger demographics who often lack brand loyalty to traditional banks.

Revolut, which commenced operations in Ireland in 2015 as a simple money-transfer app, has since evolved into a major player in the financial sector with 3 million customers. The company received its full banking license in 2022 and has expanded its offerings to include savings accounts, personal loans, motor insurance, and a stock trading platform. Additionally, Revolut is expected to introduce mortgage services in Ireland in the coming months, enhancing its competitive edge in the market.

The launch of Zippay represents a significant shift in the Irish banking landscape, reflecting both the growing demand for instant payment solutions and the evolving nature of consumer preferences in the digital age.