Across Europe, instant payments are reshaping the financial landscape – quickly becoming the new standard for financial transactions.
Germany stands out as a key market to watch in 2025. With a strong banking infrastructure, high digital payment adoption, and the implementation of SEPA Instant, Germany is at the forefront of Europe’s shift toward real-time payments.
From everyday consumer transactions to B2B and financial services, Germany’s progress comes with valuable insights into how instant payments are transforming finance.
In this article, we’ll explore five key trends in instant payments from the German market to look out for across Europe in 2025.
1. Instant payments are mainstream – and so is Pay by Bank
Instant payments are no longer a niche option. They’re becoming the standard across Europe, and as both consumers and businesses recognise the benefits of real-time transactions, adoption continues to rise.
One of the biggest shifts within this space is the mainstream adoption of Pay by Bank—or account-to-account (A2A) payments—which allow users to pay directly from their bank accounts without intermediaries like cards or digital wallets. With strong security and more predictable transaction costs, Pay by Bank is becoming a preferred method for many transactions, including retail purchases, bill payments, and even financial services.
Regulation is playing a key role in accelerating this transition. The EU Instant Payments mandate—which requires banks to offer instant payments at no extra cost—is pushing adoption across the financial ecosystem. As a result, businesses are integrating instant payment options more widely, while banks and fintech are enhancing their real-time payment capabilities.
Germany is at the forefront of this shift. With widespread bank participation in SEPA Instant, increasing business adoption, and growing consumer awareness, the country is a prime example of how instant payments are moving into the mainstream.
In fact, three in four users (75%) who have used Pay by Bank plan to use it again – in other words, it’s here to stay.
You might also be interested in: Why Merchants Need Instant A2A Payments if you would like to know more about the ins and outs of A2A payments for merchants.
2. Higher expectations for fast payouts for financial services
With the rise of the instant economy, consumers and businesses alike now expect near-instant transactions – not just for payments, but also for payouts. Whether it’s receiving a refund, accessing earned wages, or processing business disbursements, speed has become a critical factor in financial interactions.
This shift is putting pressure on businesses to accelerate their payout processes. Refunds that once took days are now expected in minutes, and employees are increasingly looking for real-time payroll solutions – e.g. earned wage access (EWA). In sectors like insurance and lending, faster disbursements can improve customer satisfaction and differentiate companies in a competitive market.
Germany is adapting quickly to these rising expectations. With a robust SEPA Instant infrastructure and growing adoption of real-time payment solutions, businesses are leveraging instant payouts to enhance both customer experience and operational efficiency. Enterprises and fintechs alike are integrating real-time disbursement solutions, recognising that delays in payouts often result in unhappy customers.
Offering instant payouts is more than just a convenience: it’s an essential competitive edge for businesses. For that reason, many financial service businesses are turning to solutions like Brite Payments Instant Payouts to simplify the payment process, remove costly manual processes and the potential for human error, and offer customers faster payouts, increasing reinvestment and loyalty.
Whether in e-commerce, payroll, or financial services, companies that embrace instant payments can build stronger customer loyalty, reduce churn, and position themselves as leaders in the evolving digital economy.
3. Gen Z are driving Pay by Bank adoption
Raised in a digital-first world, Gen Z favours speed, convenience, and transparency. They expect instant financial interactions – whether making payments, receiving refunds, or managing their money in real-time. As a result, Pay by Bank is gaining traction among younger users.
While cost savings (53%) and security (46%) are the biggest adoption drivers for Pay by Bank overall, Gen Z’s priorities tell a different story: instant refunds (33%) and transaction visibility (25%) rank higher than cost savings and security for younger users in Germany, highlighting their demand for real-time financial control.
Gen Z users expect payments to be processed instantly and refunds to hit their accounts without delay – a key reason why Pay by Bank is becoming their preferred payment method.
Aside from speed, another major factor is convenience. Pay by Bank eliminates the need for card details. It makes checkout simpler and reduces the risk of fraud. It’s a frictionless experience that fits Gen Z’s expectations for seamless digital interactions across all aspects of their daily life.
As Gen Z becomes a dominant force in the economy, businesses and financial institutions must adapt – and that means integrating Pay by Bank and prioritising instant refunds, real-time transaction tracking, and user-friendly payment experiences.
4. Consumers want the instant payment experience in new payment methods
Gen Z aren’t the only users looking for frictionless and immediate transactions. Consumers across industries are demanding speed and convenience. It’s an expectation that extends beyond just making payments: receiving payouts instantly is becoming the new benchmark.
In Germany, the shift is clear: over 43.6% of users in 2025 expect payouts within a minute, compared to just 15% in 2024.
This rapid increase highlights how quickly consumer preferences are evolving. People no longer tolerate waiting days for refunds, insurance claims, or payroll disbursements – they expect real-time financial interactions as the norm.
Interestingly, the age bracket 40-49 are the most demanding users, with 54.3% expecting payouts within 1 minute – the highest percentage of any group.
Pay by Bank is emerging as the ideal solution, offering instant transactions that combine speed and security without the need for card networks or manual bank transfers. Unlike traditional payment methods that involve intermediaries and processing delays, Pay by Bank transactions settle instantly, ensuring funds move seamlessly between accounts.
For businesses across Europe, adapting to this expectation is no longer an option – it’s a necessity. Companies that offer instant payment experiences, whether through real-time refunds, instant withdrawals, or seamless A2A payments, will gain a competitive edge. Those that fail to meet consumer demand risk losing customers to competitors offering faster, more efficient alternatives.
As instant payment infrastructure continues to expand, businesses that embrace these new payment methods will position themselves for success in an economy where speed defines the customer experience.
You might also be interested in: 5 reasons Why Instant A2A Payments are the Best Giropay Alternative
5. Robust and reliable instant payment infrastructure
The success of instant payments depends on a strong, scalable and secure infrastructure. Across Europe, financial institutions and regulators have been working to enhance real-time payment rails, ensuring that instant transactions are both efficient and resilient.
Here’s how Germany and the broader European market are strengthening instant payment infrastructure:
- Instant payment rails: Enabling cross-border transactions in seconds, SEPA Instant has become the backbone of real-time payments in Europe. The EU’s Instant Payments mandate is further accelerating adoption, requiring banks to process real-time payments at no extra cost.
- Scalable payments: German financial institutions are expanding their instant payment capabilities to ensure real-time transactions can handle growing demand. This includes improving bank infrastructure, increasing interoperability, and enhancing real-time fraud detection.
- Security and resilience: With faster payments comes a greater need for security. Banks and payment providers are implementing AI-driven fraud detection, biometric authentication, and real-time monitoring to protect users while ensuring uninterrupted service.
As instant payments become the standard, they’ll be increasingly integrated into corporate treasury systems, fintech platforms, and digital wallets, creating a seamless financial ecosystem. And with the rise of open banking and API-driven solutions, the reliability and accessibility of instant payments will only increase.
With these advancements, businesses and consumers can expect instant payments to be not only fast, but secure, stable, and widely accessible, laying the foundation for the future of European finance.
Conclusion: Instant Payments for Financial Services 2025
The European finance landscape is undergoing a significant transformation, with instant payments—particularly Pay by Bank (account-to-account)—emerging as the new operational standard. Our analysis of the German market highlights key trends expected to shape Europe by 2025: payments are becoming mainstream and are being mandated by EU regulations, leading to an increased demand for instant payouts across all sectors.
This evolution is driven by changing consumer preferences, especially among Gen Z, who prioritize speed, real-time control, and seamless digital experiences. Today, consumers of all ages expect near-instant transactions for both payments and payouts. This shift is supported by the ongoing enhancement of robust and secure infrastructure, such as SEPA Instant, which ensures that real-time transactions are both fast and reliable.
For businesses throughout Europe, meeting the rising expectation for speed and convenience is no longer optional; it has become a critical competitive necessity. Embracing instant payment solutions is essential for fostering customer loyalty, reducing churn, and positioning your company for success in the instant economy.
Are you ready to stay ahead of the curve? Get in touch today to discover how Brite Payments Instant can help your business meet the growing demand for real-time transfers.
