Setback for Irish banks' plan to develop app to rival Revolut

Traditional Irish banks are seeing increased competition from digital rivals. Picture: iStock

Plans by four Irish banks to create a payments app to rival digital firms like Revolut has been rejected at the first hurdle.

AIB, Bank of Ireland, Permanent TSB, and KBC Bank Ireland had come together to set up a company called Synch Payments “to deliver a multi-banking payment app that will enable Irish users to send and make payments in real-time”.

They lodged their plans earlier this month with the Competition and Consumer Protection Commission (CCPC) watchdog. However, in a statement yesterday, the CCPC rejected as 'invalid' the joint venture between the four firms.

"Following a preliminary review of the notification, the CCPC has formed the view that the notifying parties have not provided full details of the proposed transaction." They said the lack of details meant they were unable to determine whether the proposed transaction is a “merger or acquisition" and said they are willing to engage further with the banks on the issues.

Traditional Irish banks are seeing increased competition from digital rivals such as Revolut and N26.