BY JOHN ELLIS, FINANCIAL ADVISOR
In a significant development for Ireland’s financial sector, AIB, Bank of Ireland and Permanent TSB have announced plans to launch Zippay. An instant mobile payments service to be launched in early 2026. This initiative is aimed at counteracting the rapid rise of fintech competitors such as Revolut and is a calculated effort by the pillar banks to “modernise and reclaim market relevance”.
While this move is creditable, it prompts reflection on the delays in addressing consumer demand and the challenges that lie ahead in ensuring its success.
The origin of Zippay goes back to a failed attempt in 2020 when these banks alongside KBC Bank Ireland formed Synch Payments. This joint venture was to develop a standalone instant payments app.
Despite an investment of €17 million it failed because of regulatory obstacles from the Competition and Consumer Protection Commission (CCPC) and KBC leaving the Irish market. By late 2023 Synch was abandoned due in no small measure to the complexities of navigating competition and regulatory frameworks in a market increasingly dominated by “agile fintech players”.
Zippay, by contrast, has adopted a more streamlined approach integrating itself into the existing mobile banking apps of AIB, Bank of Ireland, and Permanent TSB, thus avoiding the regulatory complexities of a new platform. Supported by Nexi, a leading European paytech firm, Zippay will enable over five million eligible customers to send, request or split payments instantly using mobile numbers from their contact lists. This will eliminate the need for cumbersome IBANs or account details.
Customers may send up to €1,000 daily and request up to €500 a transaction. Brian Hayes, Chief Executive of the Banking & Payments Federation Ireland (BPFI), has emphasised that Zippay will respond directly to consumer demand for swift, secure, and user-friendly transactions.
This service arrives at a critical stage. Fintech firms like Revolut, which now serves three million Irish customers since its 2015 entry, have capitalised on the sluggish pace of traditional bank transfers which can take days. Revolut’s evolution into a comprehensive banking platform – offering loans, insurance, stock trading, and soon mortgages – has and will continue to erode the loyalty of younger consumers to Ireland’s traditional banks.
Zippay’s integration into existing apps coupled with robust security measures inherent in these platforms should position it as a competitive alternative that requires no additional downloads or wallet top-ups.
Nevertheless, there are concerns. Automatic enrolment, while convenient, raises questions about consumer choice and data privacy, particularly regarding the use of contact lists for identifying payees. Although the CCPC, the Central Bank, and Data Protection Commission have been consulted, rigorous safeguards against fraud strengthened by recent European advancements will be essential.
Zippay will be offered to other financial institutions, such as credit unions on “a non-discriminatory basis” before the launch date but integration costs could limit broader participation.
Zippay represents a pivotal opportunity for Ireland’s pillar banks to restore consumer trust and compete in a rapidly evolving payments landscape. Its success, however, depends on flawless execution, transparent communication – particularly regarding opt-out processes – and sustained commitment to innovation.
Should Zippay deliver on its promise of seamless, secure transactions, it could herald a new era of competitiveness in Irish banking. It should benefit us, the consumers, and challenge existing fintech dominance.
The banks must now prove they can move beyond past failures to meet the modern demands of Ireland’s financial consumers.
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