The Euro Banking Association’s (EBA) white paper, Get Ready for OCT Inst! (September 2025), delivers a clear directive for payment service providers (PSPs) to adopt One-Leg Out Instant Credit Transfer (OCT Inst) solutions.
Crafted by the EBA’s Expert Group on Cross-Border Payments (EGXP), the paper urges European PSPs to harness SEPA’s real-time payment infrastructure to meet the G20 Roadmap’s 2027 targets for cost, speed, access, and transparency in cross-border payments.
The white paper reflects the urgent need to enhance cross-border payments amid rising customer expectations, global standardisation, and regulatory pressures. Consumers and SMEs demand simplicity, cost certainty, and instant settlement for use cases like remittances or insurance payouts. Corporates seek reliable cash flow forecasting, traceability, and 24/7 availability to optimise supply chains and support digital economy transactions. PSPs, as clients of other PSPs, prioritise low-cost, high-certainty solutions with extensive corridor coverage to stay competitive.
OCT Inst leverages SEPA’s instant payment framework, particularly SCT Inst, to extend real-time capabilities to cross-border flows. This one-leg out (OLO) approach allows PSPs to utilise existing infrastructure, ensuring compliance with standards like Swift CBPR+ while providing 24/7 connectivity. A 2024 EBA survey ranked OCT Inst highest for improving G20 metrics—speed, cost, transparency, and access—due to its user-friendly design and manageable implementation complexity.
Challenges remain, however. As a voluntary initiative, OCT Inst’s reach hinges on widespread PSP adoption, requiring coordinated efforts to prevent fragmentation. Implementation demands investment, competing with other priorities, and achieving a seamless end-to-end experience calls for harmonised market practices, such as adopting the ‘SHARE’ charging model to ensure no fees are deducted from the SEPA leg’s principal amount. Compliance, particularly sanctions screening, adds complexity, though alignment with existing SCT Inst processes can streamline efforts.
The EGXP proposes a pan-European frontrunner group to drive adoption, outlining a clear timeline, identifying early adopters, and engaging non-euro jurisdictions with comparable services. PSPs must adhere to the EPC OCT Inst Rulebook, adopting ISO 20022 for robust data handling and aligning with CBPR+ guidelines. BNP Paribas, a leader in payments innovation, is actively shaping this landscape through its contributions to the EGXP and EPC initiatives, ensuring solutions meet client needs.
Damien Godderis, Head of Payments Industry Engagement at BNP Paribas Cash Management and Chairman of the EPC OLO Strategy Advisory Group, underscores the initiative’s value:
The OCT Inst Scheme represents a pivotal advancement towards unifying global payment systems, leveraging the SEPA and SCT frameworks to deliver instantaneous, secure and cost-effective cross-border transactions.
He notes that it empowers banks to provide “transparent, agile and more reliable payment solutions” aligning with G20 goals while fostering innovation for global commerce.
BNP Paribas’ commitment to collaborative industry efforts positions it at the forefront of this transformation. For treasurers, the path forward is clear: begin planning OCT Inst implementation, collaborate on market practices, and partner with BNP Paribas to deliver efficient, seamless cross-border solutions. Acting now ensures alignment with customer expectations and a competitive edge in global payments.
