Synch Payments, the money-transfer system being rolled out by the main retail banks here, is to be delayed after the Central Bank said it requires regulatory approval before it begins operating.
It had been hoped that the service, aimed at challenging alternatives such as Revolut and N26, would be up and running later this year.
However, the launch has now been put back to next year following the news that it will require authorisation from the regulator.
"Synch has been engaged with the Central Bank of Ireland for some time to ascertain whether authorisation would be required and welcomes the certainty that the decision brings," Synch Payments said in a statement.
"Synch intends to submit an application to the Central Bank for authorisation as an Account Information Services Provider (AISP) and as a Payment Initiation Service Provider (PISP) as soon as possible with a view to Synch entering the market next year."
It added that while this additional regulatory requirement will delay the launch, approval would provide the additional assurance "that is increasingly demanded by consumers and retailers of payment providers.
Synch Payments, which is backed by AIB, Bank of Ireland and Permanent TSB, received competition approval from the Competition and Consumer Protection Commission last year, after binding commitments were given.
