On Feb. 6, 2025, ECB issued Dec 2025/222 (ECB/2025/2) of Jan. 27 in Official Journal.
Decision enters into force on the 20th day following that of its publication in the Official Journal of the European Union, Feb. 26, 2025; it shall apply from Apr. 9, 2025.
On Jul. 19, ECB issued policy on non-bank PSP access to systems.
Eurosystem defined a harmonized policy to allow non-bank payment service providers (PSPs) to access central bank-operated payment systems, including TARGET.
Non-bank PSPs include payment institutions (PIs), electronic money institutions (EMIs) defined under Payment Services Directive (PSD) and Electronic Money Directive (EMD).
Follows ECB Jul. 2024 approved the Eurosystem’s policy on non-bank PSPs access to TARGET services and euro area central banks retail payment systems, see #220139.
Also follows EU CNCL Mar. 2024 issued Reg 2024/886 in Official Journal, see #190662.
Background
New policy follows enactment of Instant Payments Regulation (Reg 2024/886) which broadens the scope of entities eligible to participate in designated payment systems.
Broader access criteria for TARGET, including non-bank PSPs, aim to enhance efficiency of EU retail payments market, foster competition, support uptake of instant payments.
Eurosystem Policy
Starting in Apr. 2025, non-bank PSPs meeting certain requirements will be able to access TARGET, including T2 (for setting payments) and TIPS (for instant payments).
Requirements will be set out in the TARGET guideline and will be the same as those that currently apply to credit institutions, and only grant access to non-bank PSPs that have relevant safeguards in place, can meet operational and technical requirements.
Change will come into effect via amendment to TARGET guideline, aligned with implementation date of changes to Settlement Finality Directive, PSD at national level.
Holding an account in a central bank payment system is intended to enable non-bank PSPs to place funds to meet their settlement obligations for current business day.
The balance on such accounts will be therefore be limited in size and should only include the funds necessary to meet such obligations, manner in which maximum balance with be determined will be set out in the amendment to the TARGET guidance.
Euro area national central banks that operate payment systems other than TARGET services will develop terms and conditions to implement access by non-bank PSPs to their national payment systems as per principles of Eurosystem harmonized policy.
Taking into consideration, where needed, different risk profile compared to TARGET.
Instant Payments Regulation also introduced option for non-bank PSPs to safeguard users' funds in an account held with a central bank, subject to the bank's discretion.
Possibility of safeguarding client funds at the central bank would be additional to the options currently available to non-bank PSPs, Eurosystem will not provide accounts to non-bank PSPs for safeguarding users' funds at central banks, ECB decision to follow.
Next Steps
For more information and to start the application process, non-bank PSPs should contact their respective national central bank.
Jan. 2025 ECB Decision on Access
On Jan. 28, 2025, ECB issued decision ECB/2025/2 on access by non-bank PSPs to Eurosystem central bank operated payment systems and central bank accounts.
Article 2 lays out requirements for access to central bank operated payment systems.
As regards any request from a non-bank PSP to a Eurosystem central bank to provide access to TARGET, the provisions of paragraph 1 shall apply from Jun. 16, 2025.
Eurosystem central banks shall not offer or provide safeguarding accounts to non-bank PSPs or to crypto asset service providers; and shall not open accounts other than accounts in central bank operated payment systems for eligible non-bank PSPs.
Non-bank PSPs eligible to participate in TARGET should cease to be registered as addressable business identifier code (BIC) holders or reachable parties on Eurosystem central banks’ own account, with the exception of a central bank operated payment system’s technical account in the TARGET Instant Payment Settlement (TIPS) system.
Eurosystem central banks shall, no later than Dec. 31, 2025, terminate access for non-bank PSPs registered as addressable business identifier code (BIC) holders or reachable parties on the Eurosystem central banks’ own account in TARGET.
Holdings by non-bank PSPs of accounts in Eurosystem central bank operated payment system, while permissible, should be for purpose of placing funds to meet settlement obligations; balance/holdings should not exceed what is necessary to meet obligations.
Article 5 sets out provisions related to non-compliance with maximum holding amount limits or requirements for access to central bank operated payment systems.
This decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union, and it shall apply from Apr. 9, 2025.
Feb. 2025 Official Journal
On Feb. 6, 2025, ECB issued Dec 2025/222 (ECB/2025/2) of Jan. 27 in Official Journal.
Decision enters into force on the 20th day following that of its publication in the Official Journal of the European Union, Feb. 26, 2025; it shall apply from Apr. 9, 2025.
Regulators
ECB
Entity Types
Bank; BS; CNSM; MSB
Reference
OJ L, 2/6/2025; PR, 1/28/2025; Dec 2025/222, ECB/2025/2, 1/27/2025; PR, 7/19/2024; PSD Dir 2015/2366; EMD Dir 2009/110; SFD Dir 98/26; Citation: Reg 2024/886; ECB/2025/2; Dec 2025/222;
