I’m thrilled to sit down with a leading expert in financial technology to discuss the latest innovation in Ireland’s banking sector. Our guest today has deep insights into digital payments and banking collaborations, making them the perfect person to unpack the launch of Zippay, a new payment app backed by Ireland’s major banks. This conversation will explore how Zippay aims to challenge fintech giants like Revolut, the lessons learned from past projects, and the unique strategies behind this ambitious venture. Let’s dive into the future of instant payments in Ireland.
Can you walk us through what Zippay is and how it aims to carve out a space in the crowded payment app market?
Zippay is an exciting new instant payment service set to launch early next year, developed by Ireland’s three largest banks—AIB, Bank of Ireland, and PTSB. It’s designed for their five million eligible customers, allowing them to send, request, or split payments of up to €1,000 a day using just a phone number. What sets it apart is the seamless integration into the banks’ existing apps, so there’s no need for a separate download. This not only makes it user-friendly but also leverages the trust and familiarity customers already have with their bank’s digital platforms.
How significant is the feature of sending payments via a phone number, and what does it mean for user adoption?
It’s a game-changer. By tying transactions to a phone number, Zippay eliminates the hassle of sharing bank details or setting up new accounts. It lowers the barrier to entry, making it incredibly easy for users to start sending money instantly. For the five million customers across these banks, this simplicity could drive quick adoption, especially for everyday transactions like splitting bills or paying friends back.
Why have these Irish banks decided to collaborate again after the challenges with their previous Synch project?
The banks see a clear need to compete with fintech players dominating the payments space. Their earlier attempt with Synch, which aimed to launch a standalone app called Yippay, fell apart in 2023 due to regulatory delays and the exit of a key partner. This time, they’re motivated by the success of collaborative models in other markets and the urgent need to offer a homegrown alternative to apps like Revolut. It’s about reclaiming market share and meeting customer demand for fast, reliable payment options.
What key lessons from the Synch and Yippay setbacks have shaped the approach to Zippay?
One major takeaway was the complexity of regulatory compliance for standalone apps. Synch faced significant hurdles with the Irish Central Bank, which delayed the project by at least a year. With Zippay, integrating the service into existing bank apps bypasses those same regulatory roadblocks since the infrastructure is already approved. They’ve also learned the importance of user convenience—making sure customers don’t have to jump through hoops to access the service has been a priority.
Can you explain the partnership with Nexi and why this Italian tech provider was chosen for Zippay’s development?
Nexi, a leading European payment technology provider, is building the underlying infrastructure for Zippay. Their expertise in instant payment systems and experience across diverse markets made them a natural fit. The Irish banks likely chose Nexi for their proven track record in delivering secure, scalable solutions that can handle high transaction volumes while meeting stringent European standards. It’s about ensuring Zippay is robust from day one.
How does Nexi’s technology contribute to making Zippay both secure and user-friendly?
Nexi brings advanced encryption and fraud detection tools to the table, which are critical for protecting transactions in real-time, especially with limits as high as €1,000 per day. On the user-friendly side, their tech simplifies the payment process—think intuitive interfaces and minimal steps to complete a transfer. By balancing security with ease of use, Nexi helps ensure customers feel confident while using Zippay for everyday needs.
How does Zippay stack up against a successful system like Zelle in the U.S., and what can we learn from that comparison?
Zippay shares some similarities with Zelle, particularly the bank-backed model and focus on instant payments. Zelle was created by major U.S. banks to counter apps like Venmo, and it’s now widely used because it’s embedded in banking apps. Zippay seems to follow that playbook, but it’s tailored to the Irish market with features like phone number-based transfers. The key difference might be scale—Zelle benefits from a massive U.S. customer base, while Zippay has to win over a smaller, more concentrated audience with potentially different habits.
What challenges might Zippay face in achieving the kind of widespread adoption Zelle has seen in the U.S.?
One big challenge is market saturation. Ireland already has strong fintech players, and customers might be hesitant to switch from apps they’re comfortable with. Zelle succeeded partly because it filled a gap at the right time, whereas Zippay is entering a more crowded space. Building trust and proving value—through speed, security, or unique features—will be crucial. Plus, getting smaller institutions like credit unions on board could be tricky but necessary for broader reach.
With Revolut being such a dominant force in Ireland, how is Zippay positioning itself to compete?
Zippay is leaning on the inherent trust people have in traditional banks. Unlike Revolut, which operates as an e-money entity in many places and lacks full banking status in key markets like the UK, Zippay is backed by established institutions with deep roots in Ireland. It offers a direct, no-frills payment solution integrated into apps customers already use, which could appeal to those wary of fintech’s regulatory gray areas or deposit limits.
Looking at Revolut’s regulatory constraints, how might these play into Zippay’s strategy to gain market share?
Revolut’s limitations, like the £50,000 deposit cap in the UK and lack of full deposit insurance, create an opening for Zippay. Many customers value the security of knowing their money is protected under schemes like the Financial Services Compensation Scheme, which traditional banks offer. Zippay can capitalize on this by emphasizing stability and safety, positioning itself as a reliable alternative for users who prioritize peace of mind over flashy features.
What is your forecast for the future of instant payment apps like Zippay in Ireland over the next few years?
I think we’re on the cusp of a major shift in how payments are handled in Ireland. Zippay has the potential to become a household name if it nails the user experience and builds a critical mass of users early on. However, the competition will be fierce—not just from Revolut but also from systems like SEPA Instant, which offers cross-border capabilities. My forecast is that Zippay could capture a significant share if it leverages bank trust and keeps innovating, but it’ll need to stay agile in a fast-evolving fintech landscape.