Ireland's largest banks collaborate on new digital payment system to rival Revolut

Ireland's largest banks collaborate on new digital payment system to rival Revolut

AIB, Bank of Ireland, Permanent TSB and the Belgian bank KBC's Irish branch are working together to launch an app offering digitised financial transactions.

At a time when digital transactions are rapidly gaining in popularity and market share, traditional banking services are having to look to the future, and adapt to appeal to a younger market.

Syntech Payments, a joint venture company, has been set up to manage the endeavour. Ulster Bank, which has experienced some setbacks in the Irish market in recent months, is notably absent from the Syntech project.

The Competition and Consumer Protection Commission (CCPC) has been notified of the venture this week and has begun assessing its adherence to competition rules.

The Banking & Payments Federation Ireland, the predominant voice of financial services sector, confirmed the launch of a "multi-banking payment app that will enable Irish users to send and make payments in real time".

"This is now a matter for the CCPC and we await their determination on the application," the BPFI concluded.

Records from the Companies Registration Office confirm that Syntech was formally established in September of last year.

The filings do not detail the bank’s respective stakes in the venture, particularly as to whether shares have been equally apportioned, or allocated pro rata, according to each banks market size.

The ventures directorship includes: Ann Smith, director of corporate services at BPFI, and Inez Cooper, a cards and payments sector specialist. Ms Cooper worked with PTSB and Bank of Ireland before establishing a consultancy firm in 2017.

UK-based fintech operators, such as N26, Revolut, Monzo, are among the growing number of digital platforms that are disrupting the card payments market, and posing a threat to traditional vendors like AIB and Bank of Ireland.