ACI Worldwide and STET: European Instant Cross-Border Transactions Reach New Record High

Rhea-AI Summary

ACI Worldwide and STET have set a new record by processing 50 million instant cross-border payments in the last year. STET's CSM platform, leveraging ACI's technology, supports major European instant payment schemes and processed over 35 billion transactions in 2023, with a daily average of more than €25 billion.

STET and ACI's collaboration since 2017 has facilitated seamless SEPA Instant Credit Transfers across Europe. The number of instant cross-border payments is projected to grow by more than 50% in 2024, driven by the new EU Instant Payments Regulation passed in February 2024. ACI's technology enables 20 member banks to connect directly to TIPS and RT1, ensuring pan-European reachability.

Instant payments in Europe are expected to rise from 17.2 billion in 2023 to 38.6 billion in 2028, accounting for 13% of all electronic payments. ACI supports 26 domestic and pan-regional real-time schemes globally, covering about one-third of countries offering real-time payment services.

Positive

• 50 million instant cross-border payments processed in the last 12 months.
• STET processed over 35 billion transactions in 2023, daily average exceeding €25 billion.
• Expected 50% increase in cross-border payments in 2024.
• New EU Instant Payments Regulation to drive rapid growth.
• ACI's technology facilitates seamless SEPA Instant Credit Transfers.
• ACI supports 26 real-time schemes globally, covering one-third of real-time payment countries.

Negative

• Potential risks related to scalability as transaction volumes are expected to increase by over 50%.
• Dependence on new EU regulations may introduce compliance challenges.

Insights

Financial Analyst

The announcement of STET and ACI Worldwide processing 50 million cross-border real-time transactions in the last 12 months is notable. From an investor's perspective, this growth highlights the increasing demand for real-time payment solutions within the European market. The fact that STET processed more than 35 billion transactions in 2023, with a daily average of €25 billion, indicates a robust and expanding network.

Given the expected growth in instant payment transactions across Europe, driven by the new EU Instant Payments Regulation, this partnership positions both companies to capitalize on a burgeoning market. ACI's extensive reach, covering approximately one-third of the countries offering real-time payments services, provides scalability and potential new revenue streams.

Investors should note that the projected increase in transactions to 38.6 billion by 2028 and the associated rise in instant payments market share from 8% to 13% reflects a significant growth potential. This trend could result in increased profitability for both STET and ACI, driven by higher transaction volumes and potentially lower per-transaction costs as infrastructure scales.

Market Research Analyst

The collaboration between STET and ACI Worldwide underscores a critical shift towards real-time payment systems in Europe. The ability to offer interoperability with other major European instant payment schemes, such as TIPS and RT1, suggests a seamless integration and a strong competitive advantage in the marketplace. This kind of interoperability is important for adoption by banks and payment service providers (PSPs).

The projected growth in instant payments is driven by regulatory changes and technological advancements. As more European countries adopt these regulations, the demand for fast, efficient and secure payment systems will likely surge. ACI's capability to provide solutions to central banks and financial institutions globally strengthens its market position.

With the new EU Instant Payments Regulation, the market is poised for rapid expansion. Investors should watch how this regulatory environment shapes the competitive landscape and the potential for ACI and STET to capture increased market share. The emphasis on real-time transaction processing is aligned with global trends and companies that can deliver on this front are well-positioned for future growth.

Tech Expert

The use of ACI's Low Value Real-Time Payments as a SaaS service by STET is particularly insightful for understanding the technological backbone of this partnership. This platform offers sophisticated routing and processing capabilities, which are essential for handling high volumes of transactions efficiently and securely. The fact that ACI powers 26 domestic and pan-regional real-time schemes across six continents indicates a mature and tested technology stack.

From a technological perspective, the scalability and reliability of ACI's solutions are important for supporting the expected growth in instant payments. The ability to connect member banks directly to European schemes ensures that banks can offer a seamless customer experience while also maintaining regulatory compliance.

Moreover, ACI's global coverage and its role in providing real-time payment solutions to central banks, participant banks, fintechs and other PSPs highlight its technological leadership. This breadth of experience can translate into continued innovation and enhancements in payment processing technologies, further solidifying ACI's position in the market.

• 50 million instant cross-border payments were processed by STET and ACI Worldwide in the last 12 months
• STET’s CSM platform leverages ACI technology to offer interoperability with the other major European instant payment schemes

OMAHA, Neb. & PARIS--(BUSINESS WIRE)-- Instant cross-border payments processed by STET, one of the leading European clearing and settlement systems, (CSM), and ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, have reached a new record high. STET, which processed more than 35 billion transactions in 2023, representing a daily average of more than €25 billion, processed more than 50 million cross-border real-time transactions over the last 12 months, a number that is expected to increase by more than 50% in 2024.

STET and ACI Worldwide have been working together since 2017, offering banks and payment service providers (PSP) across Europe a seamless, end-to-end solution for the Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) scheme, thus facilitating the transfer and settlement of instant payments and contributing to making instant payments a strong foundation towards a unified European payments system. STET’s platform uses ACI Low Value Real-Time Payments as a SaaS service, offering sophisticated routing and processing capabilities to enable its 20 member banks to connect directly to the European schemes TIPS and RT1, providing full pan-European reachability and interoperability for instant payments.

Instant payment transactions across SEPA, including the 27 European Union (EU) member states, are expected to grow rapidly, driven by the new EU Instant Payments Regulation passed in February 2024. According to ACI’s 2024 Prime Time for Real-Time report, transactions across Europe are expected to rise from 17.2 billion in 2023 to 38.6 billion in 2028. By 2028, instant payments are forecast to account for 13% of all electronic payments in Europe, up from 8% in 2023.

“Our partnership with ACI Worldwide has gone from strength to strength, and we are proud to have reached this milestone. By leveraging ACI’s state-of-the-art technology, banks and PSPs across Europe can connect to STET’s Instant Payments CSM quickly and cost-effectively, giving broad European reachability,” said Regis Folbaum, CEO, STET. “Our platform enables banks and PSPs to process instant payments securely and at scale, so they can benefit from instant payment growth opportunities, while also providing the best customer experience.”

“ACI is uniquely positioned to provide interoperability and connectivity to all European and global schemes, which is crucial as efforts to build cross-border payment networks accelerate across the world,” said Nick Craig, head of Europe, ACI Worldwide. “Central infrastructures, banks, and PSPs are using ACI to maximize the use of their real-time rails and position themselves for the future growth of instant payments, whilst offering new and innovative service for their customers.”

ACI currently powers 26 domestic and pan-regional real-time schemes across six continents — including 10 central infrastructures — providing solutions to central banks, participant banks, fintechs, and other PSPs. Globally, ACI covers approximately one-third of the countries that offer real-time payments services, reaching about 3 billion people served by various organizations, including central governments, payment networks, banks, financial institutions, and fintech companies.

About ACI Worldwide

ACI Worldwide is a global leader in mission-critical, real-time payments software. Our proven, secure and scalable software solutions enable leading corporations, fintechs, and financial disruptors to process and manage digital payments, power omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with a local presence to drive the real-time digital transformation of payments and commerce.

About STET

STET is a critical operator for its clients, the banks and the banking communities it serves every day. As a Systemically Important Payment System (SIPS), STET commits to respecting the highest level of security, rigour, and transparency. Since its creation 20 years ago, STET’s vision is that European harmonisation will not preclude market diversity. Hence, we develop flexible and sustainable architectures, designed to host the various needs of our clients with user-friendly multi-channel services. Having a consistent 360° service offering including a clearing system able to handle the whole range of payment instruments (domestic and SEPA) as well as a routing and authorization network means that we can support all payment challenges.

© Copyright ACI Worldwide, Inc. 2024
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617007769/en/

Media Contacts

Nick Karoglou | Head of Communications and Corporate Affairs | nick.karoglou@aciworldwide.com

Katrin Boettger | Communications and Corporate Affairs Director | Katrin.boettger@aciworldwide.com

Isabelle Thiebault | Head of Strategy and Communications | isabelle.thiebault@stet.eu

Source: ACI Worldwide

FAQ

What record did ACI Worldwide and STET achieve in cross-border payments?

ACI Worldwide and STET processed 50 million instant cross-border payments in the last 12 months, setting a new record.

How many transactions did STET process in 2023?

STET processed over 35 billion transactions in 2023, with a daily average of more than €25 billion.

What is the projected growth for cross-border payments with ACIW in 2024?

Cross-border payments are expected to increase by more than 50% in 2024.

How does ACI Worldwide support the SEPA Instant Credit Transfer scheme?

ACI Worldwide's technology enables seamless connectivity and processing of SEPA Instant Credit Transfers across Europe.

What impact will the new EU Instant Payments Regulation have?

The new EU Instant Payments Regulation, passed in February 2024, is expected to drive rapid growth in instant payment transactions across Europe.

How extensive is ACI Worldwide's global real-time payment scheme support?

ACI Worldwide supports 26 domestic and pan-regional real-time payment schemes across six continents.