Ireland's digital payments landscape is 'lagging' behind other countries — Central Bank

Deputy governor said despite the infrastructure for instant payments being available to institutions since 2017, the providers of payment accounts in Ireland have not yet implemented or adopted it

'Many of the benefits of technology in relation to payments for domestic consumers and the broader economy remain untapped.'

The Central Bank has criticised Ireland's banks and digital payment providers, saying the country was "lagging" behind other EU countries when it comes to instant payments and transfers.

Speaking at the National Payments Conference hosted by the Banking and Payments Federation of Ireland (BPFI), Central Bank deputy governor Vasileios Madouros said much of the benefits of technology in relation to payments for consumers and the broader economy remain untapped.

He said despite the infrastructure for instant payments being available to institutions since 2017, the providers of payment accounts in Ireland have not yet implemented or adopted it.

"The deployment of open banking, especially streamlined payment initiation flows through ‘one-click checkouts’, has been slow and its potential remains largely untapped," he said.

"Ireland is host to a growing and innovative payments sector. Ireland is also the base of a very innovative technology sector. And people have shown they are willing, and eager, to embrace new technology in payments. Yet many of the benefits of technology in relation to payments for domestic consumers and the broader economy remain untapped."

Making the most of that opportunity will be critical. Because a healthy and competitive economy relies on an innovative, inclusive and resilient payments ecosystem.

Public consultation is ongoing by the Department of Finance on a new National Payments Strategy. 

Mr Madouros said at the time of the last payment plan, Apple Pay and Google Pay did not even exist in Ireland and the central role of mobile devices in many aspects of our lives was still evolving. 

He said since then mobile wallet payments now account for nearly half of all contactless card payments and Ireland has also seen the emergence of foreign digital banks offering mobile payments solutions in Ireland with significant uptake domestically.

Publishing its recommendations to the public consultation, the Central Bank said despite the need for improvements to digital payments in Ireland, cash should remain widely available and accepted as a means of payment, and this choice should be safeguarded for consumers and businesses.