Four Irish banks have teamed up to develop a new payment processing application that they believe will rival Revolut’s.
This move by Bank of Ireland, AIB, KBC Bank and Permanent TSB is a pioneer joint activity between the four key banks in two decades. The Competition and Consumer Protection Commission was notified of the intention to develop the application jointly to ensure that it does not infringe on current laws.
The banks are working together to develop the application-based payment system in an effort to control the increasing loss of customers to Apple Pay and Revolut’s digital disruption technology.
Their rival Revolut claimed that they have at least a million customers, with a majority finding their money application appealing and convenient.
The four banks are working on the new application, dubbed Pegasus, that they hope will let customers receive and also make instant payment from other banks or their own within Ireland. They noted that this system will be free to access by other banks or financial institutions in the country. That incluludes Ap Post as well as Credit Unions.
This project has been in the pipelines for the past two years, under the coordination of the Banking and Payments Federation Ireland, the country’s trade organization. The project is backed by the Central Bank.
Payment Application N26 and Revolut have been signing up users in large numbers. Revolut recently claimed that they have over 1.2 million customers using their application in the country. N26, which operates a German license claims to have 150,000 users, and is hoping to reach 200,000 users in 2021.
The applications are particularly appealing to young users, especially during the lockdown since physical branches were inaccessible.
N26 is the first institution in Ireland to charge negative interest on customer deposits, local media learnt. The bank will charge a negative interest on all customer deposit above €50,000 starting November 2021, and it will be applicable on the balance beyond the amount, and not the full customers savings.