Key Facts for Finland
- Primary real-time rails: SEPA Instant Credit Transfer (SCT Inst), Siirto, and Instant Payments Finland.
- Typical settlement times: Within seconds.
- Common limits: Varies by institution.
What “real-time payments” means in Finland
In Finland, a real-time payment is a credit transfer available 24/7 that settles within seconds, making funds immediately usable by the recipient. The scope covers domestic and cross-border euro transactions through systems like SEPA Instant and the mobile-based Siirto. While most Finnish banks can receive instant payments, the ability to send them is not yet universal, and a fully interoperable national solution is still in development. There is no specific local legal definition; instead, these payment systems operate under broader European Union regulatory frameworks like the Payment Services Directive 2 (PSD2).
The Bank of Finland, in coordination with the national Payments Council, leads the development of the country’s instant payment strategy. While specific clearing infrastructure is evolving, the mobile payment system Siirto is operated by Automatia. For broader SEPA-aligned transfers, clearing is handled by automated clearing houses (ACHs) (industry norm). The messaging format aligns with the ISO 20022 standard (industry norm), the required protocol for all SEPA transactions that ensures interoperability across Europe and beyond.
While Finland is a world leader in digital finance, its development of a unified national instant payment solution has progressed more slowly than in some peer nations.
Payment Rail Overview
SEPA Instant Credit Transfer (SCT Inst)
As a pan-European system, SEPA Instant standardizes real-time euro payments across 36 countries, including Finland. Introduced to the Eurozone in 2017, it allows for the near-instant transfer of funds 24/7 using a recipient's International Bank Account Number (IBAN). This system makes cross-border euro transactions as straightforward as domestic ones.
- European Standardization: A single framework governs euro payments across the SEPA zone, reducing complexity for international transfers.
- 24/7 Availability: The network operates continuously, allowing for payments to be sent and received at any time, day or night.
- Near Real-Time Settlement: Funds are typically credited to the recipient's account within seconds of the transaction being initiated.
Pros
- Standardized format reduces errors and processing delays.
- No distinction in cost or speed between domestic and cross-border euro payments.
Cons
- Sending capabilities are still being rolled out across all Finnish banks.
- Development is dependent on broader European initiatives, not just Finnish needs.
Siirto
Launched in 2017 by Automatia, Siirto is Finland's native mobile payment system. It facilitates real-time money transfers using just a mobile phone number, removing the need for bank account details. The system is widely used for peer-to-peer payments, splitting bills, and e-commerce checkouts.
- Mobile-First Design: Users only need a recipient's phone number to send money, simplifying the payment process.
- Instant Interbank Transfers: Payments settle in real time, even when the sender and receiver use different banks.
- Broad Integration: The system is supported by major Finnish banks and integrated into various payment applications.
Pros
- Highly convenient for everyday P2P transactions.
- Strong adoption has made it a key part of daily financial life in Finland.
Cons
- Primarily a domestic system with limited cross-border functionality.
- Relies on users having a smartphone and a participating bank's app.
Instant Payments Finland
This is not a single rail but the national project to build a unified instant payment infrastructure. Spearheaded by the Bank of Finland, the initiative aims to create a resilient, 24/7 clearing and settlement system. It is designed to work with existing rails like SEPA and Siirto to provide a cohesive and secure payment experience for all users.
- National Infrastructure: Aims to be the foundational system for all real-time payments, improving national oversight.
- Security and Resilience: A primary goal is to protect financial data under European jurisdiction and reduce risks from external interference.
- Interoperability: Designed to function alongside and support other payment systems like SEPA Instant and Siirto.
Pros
- Will create a more robust and unified national payment framework.
- Boosts national security by ensuring domestic control over critical infrastructure.
Cons
- The system is still in development and not yet fully implemented.
- Success depends on the cooperation of all financial institutions in the country.
Limits, Fees, and SLAs
- Operating Hours: Instant payment infrastructure provides 24/7 settlement. Credit transfers can be made in real time, around the clock, every day of the year.
Compliance and Risk
KYC/KYB & AML
Finland's financial regulations, aligned with EU directives like PSD2 and MiCA, mandate strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. Service providers must perform customer due diligence, adopt a risk-based approach, and report suspicious activity to the Financial Intelligence Unit (FIU).
Data Residency & Privacy
While specific data residency laws are not detailed, the regulatory approach prioritizes keeping sensitive financial information within European jurisdiction. All payment service providers operating in Finland must adhere to the EU’s General Data Protection Regulation (GDPR) for processing personal data.
Fraud Controls
The PSD2 framework mandates Strong Customer Authentication (SCA) for all electronic payments to secure transactions. Financial institutions must also follow EBA guidelines for reporting fraud data and major incidents, creating a robust defense against illicit activities and operational risks.
Recordkeeping & Audits
Regulatory compliance requires firms to maintain detailed records of transactions, customer due diligence, and risk assessments. These documents are essential for reporting to authorities like the FIU and the Finnish Tax Administration, and for demonstrating compliance during regulatory audits.
Lightning Network Integration as a Solution
The Lightning Network is a second-layer protocol built on Bitcoin that processes transactions off-chain for near-instant, low-cost payments. While Finland’s RTP rails are efficient for domestic and European transfers, the Lightning Network offers a complementary global infrastructure. It provides an open, interoperable payment system for transactions that extend beyond the reach of regional networks, making it a powerful instrument for worldwide commerce.
While local RTP rails offer settlement in seconds, Lightning matches this speed with significantly lower costs, often fractions of a cent. The primary distinction is reach; where domestic systems are confined to national or regional borders like the 36-country SEPA zone, the Lightning Network operates as a borderless system. It connects users globally, requiring only an internet connection for participation.
- Cross-Border Complexity: It bypasses traditional banking intermediaries, high fees, and currency conversion delays for international payments.
- Scalability Limitations: By moving transactions off-chain, it can support millions of transactions per second, addressing the throughput constraints of the main Bitcoin blockchain.
- High Transaction Fees: Off-chain processing dramatically reduces costs, making micropayments for content streaming or gaming economically practical.
Exploring the Lightning Network opens a new frontier for truly global, real-time financial interactions.
B2B Enterprise Use Cases
- Supplier Payments – Businesses pay international suppliers by sending funds over the Lightning Network for immediate settlement.
"Business value:" Strengthens supply chain relationships and opens access to early payment discounts. - Merchant Settlement – Retailers receive customer payments directly and instantly, bypassing traditional multi-day settlement cycles.
"Business value:" Reduces settlement times from days to seconds and lowers transaction costs. - Treasury Optimization – Corporate treasuries move funds between global subsidiaries in real-time to manage working capital around the clock.
"Business value:" Provides global, 24/7 liquidity management without banking hour constraints. - Payroll for a Global Workforce – Companies pay international employees and freelancers instantly, with funds arriving in their digital wallets within seconds.
"Business value:" Simplifies global payroll and gives workers immediate access to their earnings. - B2B Micropayments – A company pays for API calls or data services on a per-use basis with tiny, real-time payments.
"Business value:" Introduces new pay-as-you-go business models for digital services.
Cross-Border Transactions and Remittances to Finland
Cross-border real-time payments face significant hurdles. Reaching Finland from outside the Eurozone requires navigating complex FX paths and bridging disparate payment rails, adding cost and delays. Each transaction must also satisfy stringent EU compliance standards, creating friction, especially with non-EU partners. Finnish firms must apply the same level of scrutiny to international payments as domestic ones, introducing operational bottlenecks that slow what should be an instantaneous process. This regulatory and technical complexity makes truly global RTP a major challenge.
- Finland to Germany: As members of the SEPA zone, euro-denominated payments between Finland and Germany are processed as easily as domestic transfers. Businesses can pay suppliers using SEPA Instant for near real-time settlement with no extra cross-border fees.
- Finland to Sweden: Transactions between these Nordic neighbors often require currency conversion from euros to kronor. Payments are subject to reporting requirements by payment service providers in both countries to track cross-border flows.
- Finland to India: This corridor highlights the friction of global payments, as transactions must meet strict EU regulations like MiCA. Indian entities must often align with European standards, which can cause delays and increase costs for digital remittances.
The Lightning Network offers a direct path for global payments. By using Bitcoin as a settlement asset, it bypasses the correspondent banking system entirely. This model minimizes currency conversion delays and intermediary fees, resulting in faster and dramatically cheaper international transactions.
How Lightspark Makes Integration Easy
Lightspark helps fintechs, digital banks, wallets, and exchanges integrate with the Lightning Network to offer global, real-time payments. Our managed infrastructure abstracts away the operational complexities of node management, including automated liquidity and optimized routing. With comprehensive developer tooling and built-in compliance functions for KYC and AML, you can build and scale quickly. This approach allows you to provide your customers with sub-second settlement globally, opening new markets and use cases for instant, low-cost transactions. Ready to build on the future of money? Talk to our team.
Sources and Further Reading
- https://www.europeanpaymentscouncil.eu/news-insights/insight/finnish-payment-landscape-digitalised-society-one-most-developed-payments – Finland's highly digitalized payment landscape.
- https://www.lightspark.com/contact – Contact form for Lightspark's team.
- https://www.lightspark.com/knowledge/how-the-lightning-network-is-transforming-bitcoin – Lightning Network's impact on Bitcoin.
- https://www.lightspark.com/knowledge/is-crypto-legal-in-finland – Legality of cryptocurrency in Finland.
- https://www.lightspark.com/knowledge/what-does-the-lightning-network-do – Explains the Lightning Network's function.
- https://www.lightspark.com/news/insights/what-are-lightning-payments – Overview of Lightning Network payments.
- https://www.suomenpankki.fi/en/money-and-payments/pikamaksamisen-edistaminen-suomessa/ – Promoting instant payments in Finland.
- https://www.suomenpankki.fi/en/news-and-topical/press-releases-and-news/releases/2025/a-finnish-instant-payment-solution-would-improve-resilience-and-consumer-choice/ – Finnish instant payment solution benefits.
- https://www.transfi.com/blog/finlands-payment-rails-sepa-siirto-and-the-digital-first-economy – Finland's payment rails and economy.
- https://www.vero.fi/en/detailed-guidance/guidance/326275/the-information-reporting-requirement-of-payment-service-providers-concerning-cross-border-payments/ – Reporting rules for cross-border payments.
