SEPA Instant Credit Transfer: How Europe is Building an Alternative to Cards – and Why It Matters

[BadB]

An analysis of the growth of direct bank transfers as a replacement for card payments

Introduction: The End of Plastic Addiction​

In 2026, a quiet revolution is taking place in Europe.
You walk into a store, scan a QR code, confirm the payment in your banking app — and the money is gone in three seconds. No card. No CVV. No 3D Secure.

This is SEPA Instant Credit Transfer (SCT Inst) — an instant bank transfer system that is gradually replacing cards as the primary payment method in the EU.

By 2027:

• 70% of all digital transactions in the EU will go through SCT Inst,
• The issuance of debit cards will be reduced by 50%,
• Card payments will become "obsolete technology".

In this article, we'll look at how SEPA Instant works, why it's replacing cards, and what implications this has for carders and businesses.

Part 1: What is SEPA Instant Credit Transfer?​

Technical definition​

SEPA Instant Credit Transfer (SCT Inst) is an instant bank transfer system within the Single European Payments Area (SEPA), launched in 2017 and actively developed since 2022.

Key features:

• Instant transfers (less than 10 seconds, 24/7),
• Limit: up to €100,000 per transaction,
• Identification: IBAN + BIC (without card),
• Direct connection between banks, without the participation of Visa/Mastercard.

Example:
To pay for a Spotify subscription, you select “Pay by Bank” → confirm via the Revolut app → the money is debited within 5 seconds.

Part 2: Why SEPA Instant is replacing cards​

Three reasons for abandoning cards​

1. Speed and reliability

• Card: 2-5 seconds + 3D Secure + risk of decline,
• SEPA Instant: 3–10 seconds + guaranteed crediting.

2. Low fees

• Card: 1.5–2.5% for merchants (Visa/MC markup),
• SEPA Instant: 0.1–0.3% for merchants, 0% for users.

3. Complete control over data

• Card: PAN, CVV, expiration date - sensitive data,
• SEPA Instant: IBAN only - does not allow cloning.

Statistics (2026):

• SCT Inst volume: €1.2 trillion/year (+85% by 2023),
• Share of card payments: decreased by 12% over the year.

Part 3: How this affects carding in the EU​

Three blows to existing methods​

1. Reducing investment in cards

• Banks are stopping updating 3D Secure systems for debit cards,
• Non-VBV cards are becoming rarer and less stable.

2. Strengthening monitoring of remaining cards

• All fraud engine resources are redirected to the remaining card transactions.
• Fraud score for new cards is automatically increased.

3. Shrinking the window of opportunity

• By 2027, most merchants will switch to “Pay by Bank”,
• Card options will be hidden or removed.

Forecast (2027):

• Carding success rate in the EU: <45%
• Time to lock: <30 seconds

Part 4: New Opportunities for Legal Business​

Two strategies​

1. Integration with Pay by Bank

• Register a MOTO business in Germany/Poland,
• Connect to SEPA Instant via Stripe, Adyen or Tink,
• Accept payments directly from bank accounts.

Advantages:

• Commission: 0.15% instead of 2.9%,
• Chargebacks: almost impossible,
• Trust: 40% higher (according to Stripe).

2. Focus on digital goods with direct banking acceptance

• Sell software, courses, subscriptions through platforms with SCT Inst,
• Use the Open Banking API to verify clients.

Example:

• Online school in Berlin accepts payments via SEPA Instant,
• Conversion increased by 22%,
• Chargeback’ы = 0.

Part 5: Why SEPA Instant Doesn't Threaten Cross-Border Carding (Yet)​

Three reasons​

1. SEPA Instant only works within the EU.

• You can't pay for Steam (USA) via SEPA Instant,
• International purchases still require a card.

2. Cards are needed for global platforms

• Amazon, Netflix, Steam do not support SEPA Instant.
• Brazilians, Indians, and Africans continue to use cards.

3. Weak control over international transactions

• The regulator's focus is on internal payments,
• Cross-border fraud monitoring remains the same.

Window of opportunity:
2026–2027 are the last years when EU cards will be effective.

Part 6: The Future: When SEPA Instant Goes Global​

Chronology of expansion​

Year	Event	Consequence
2025	Integration with UK Faster Payments	EU ↔ United Kingdom
2026	Pilot with Swish (Sweden) and Bizum (Spain)	Expansion into Northern Europe
2027+	SWIFT GPI integration	Global instant transfers

The truth:
SEPA Instant isn't just a European system. It's a prototype for the future of global cardless payments.

Part 7: Practical Recommendations​

For carders:​

1. Don't use EU cards for domestic transactions within the EU - SEPA Instant is replacing them,
2. Focus on cross-border operations (Brazil, India, USA),
3. Avoid physical goods in the EU - they have almost completely switched to Pay by Bank.

For legal businesses:​

1. Register a business in Poland or Germany,
2. Connect SEPA Instant via Stripe,
3. Sell digital goods directly to the EU — the market is growing by 35% per year.

Rule:
SEPA Instant is not a threat. It's a signal to transition to direct banking.

Conclusion: The future belongs to banks, not networks.​

SEPA Instant isn't just an "alternative to cards". It's a return to the roots of finance — a direct relationship between payer and recipient, without intermediaries.

Final thought:
True security isn't about hiding data, but about minimizing it.
Because in the world of SEPA Instant, an IBAN is all you need.

Stay informed. Stay adaptive.
And remember: in the world of payments, simplicity is the highest form of security.