DUBLIN - In a significant shift in Ireland's financial services landscape, Synch Payments DAC has officially halted the development of its instant payment app, Yippay. The project, backed by major Irish banks including AIB, Bank of Ireland, and Permanent TSB, was initially poised to compete with fintech giants like Revolut by providing real-time money transfer services.
The decision to discontinue Yippay comes after a series of setbacks related to regulatory approvals and competitive pressures. The Central Bank of Ireland's stringent authorization process had already caused delays in the app's launch as of July 2023. These delays sparked concern among the consortium of retail banks over losing ground in the payments sector to digital-first competitors.
Despite overcoming hurdles such as obtaining clearance from the State’s competition watchdog over objections from established players like PayPal (NASDAQ:PYPL), Synch Payments ultimately decided not to move forward with the launch. A combination of an extended launch timeframe and other undisclosed factors contributed to this decision.
The rise of challenger banks has intensified competition in Ireland's banking sector. Revolut, in particular, has made significant strides by growing its Irish customer base to approximately two million and introducing Irish IBANs. This expansion into traditional banking territories such as lending and other financial products presents a formidable challenge for domestic banks.
Yippay's termination reflects the broader difficulties faced by Irish banks in adopting advanced payment technologies akin to the Sepa system. The end of this collaborative effort underscores the need for traditional financial institutions to innovate rapidly to stay relevant in an increasingly digital economy.
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