Introduction

Poland stands as one of the smartest payment ecosystems in Central Europe. Poland offers a mix of legacy banking and modern financial services as its infrastructure is built on active banking penetration, extensive fintech infrastructure, strong regulatory support and robust growth of the industries' pillars such as the finance and banking industry. Key systems in Poland include Elixir (standard clearing for PLN), Express Elixir (instant payments in PLN), Euro Elixir (for euro-payments), BLIK (mobile payments / wallet-like system) as well as increasing SEPA vicinage in the country. These rails often overlap and come together in interesting patterns making Poland’s payment infrastructure worth understanding. In this article, let's find out about these efficient rails and how they impact growth and development. 

Poland’s Payment Infrastructure and its key components

Poland’s infrastructure is built on several rails catering to several needs, let’s go over each of them to understand their functions and how they work;

1. Elixir (Standard PLN Clearing System) 

Elixir is the core payment system in the country which is operated by the National Clearing house (KIR). It processes domestic PLN credit and debit cards and payments for taxes and social insurance. The transactions are cleared in a certain pattern on business days i.e thrice on a working day with settlements managed by central bank’s SORBNET2 system. Although widely adopted and trusted among Polish institutions and discrete bodies, Elixir is not real time in its nature, limiting it to scheduled payments and causing certain delays.

2. Express Elixir (Instant PLN Payments)

To meet the needs for a real time central system, Elixir Express is operated by KIR. It allows users to send and receive PLN within seconds and is available round the clock across the year. It sets certain transaction limits which vary from the category of transactions; these payments mainly need to be supported by the sender and receiver banks to be processed and settled instantly.

3. SEPA Euro transfers (Euro Elixir)

The wider SEPA network in Poland is connected by the network of  Euro Elixir supporting standard SEPA Credit payments making it an essential system for organisations and individuals dealing in cross border euro flows. This system generally processes transfers in a business day mainly depending on bank cutoff times - not facilitating real time transfers.  

4. Euro Express Elixir (SEPA Instant)

Similarly, SEPA Instant is aligned with Euro Express Elixir enabling instant Euro transfers across European borders with SEPA Instant Credit card (SCT inst). This system is still gaining traction among banks being the primary providers. Once widely adopted, this system will allow instant real time payments across Poland and the EU. 

5. BLIK (Mobile payment system)

BLIK is a mobile based system integrated directly into bank apps allowing users to generate one time codes facilitating P2P transfers, in store purchase, ecommerce checkouts and ATM withdrawals as well. It's one of the most successful fintech based  initiatives in the economic growth driven Poland. These transactions are mainly instant, making it highly popular among users.

6. SORBNET2 (High-Value Settlement System)

Poland’s real time growth settlement system run by the National Bank of Poland, this system is the main facilitator of the country’s large values and urgent transfers. While this system is operated behind the scenes and isn’t directly used, it ensures the settlements of various payment rails mentioned above, ultimately ensuring stability in the payment structure of Poland.   

Flows and use cases of Polish payment systems 

Understanding how payments move frictionlessly in Poland will help clarify multiple aspects of these rails, while some pain points remain, the overall success is worth taking a look.

1. Domestic PLN Transfer (non-urgent)

Uses Elixir and is settled via SORBNET2. Receivers get the funds within a day or next day depending on banking cut offs. 

2. Instant PLN Transfer

Express Elixir, with its real time clearing system helps transfer of funds within seconds. It stands best for emergencies, merchant payments and P2P transfers.

3. Debit / Direct Debits in PLN

Scheduled sessions are supported by Elixir which supports direct debit to be cleared in scheduled time and not instantly.

4. Online / eCommerce / POS Payments

BLIK is widely used in such scenarios, where a code can be easily generated via a bank app or even mobile wallet. Alternatively, cards, credit cards, contactless transfers can be used via card networks.

5. Cross-Border / EUR Transfers

For standard Euro payments, SEPA credit transfers are used by SEPA Elixir, on the other hand, instant payments can be rolled out via SEPA instant through Euro Express Elixir. This system extensively helps foreign trade, remittances and business payouts.  

What does the future hold for Poland?

The future of payments in Poland seems to be driven by the strong regulatory systems and high adoption rate for new fintech entrants. The coming years lie in adoption of digital currencies and assets for driving extensive contactless payments. Platforms and partners like TransFi are facilitating these modern rails over the existing robust infrastructure of Europe as well as countries worldwide. TransFi offers quick and accessible integrations with local payments rails, easy digital assets settlements and a worldview into currencies and payments methods used all across. TransFi is helping the many countries in the global realm embrace a better future with the ease of the best services and interface at power by connecting users with over 100+ currencies, 250+ local payment methods, and 80+ digital assets, giving both senders and receivers control, speed, and cost savings. Looking at the trends in the country, the country is set out for major changes in coming years some of which are highlighted by;

1. More banks are likely to adopt Euro Express Elixir for outgoing instant EUR transfers as the systems are being piloted and expanded.

2. Express instant payments are becoming the way to go for everyday payments, merchant transactions, POS, P2P etc.

3.  More features around BLIK like higher limits, richer merchant acceptance and better user experience are driving constant development and testing. 

4. High potential for fintechs to develop overlay services like multichannel payments, financial management, recurring payments and cross border benefits built upon and leveraging the current rails.  

5. Cross border commerce and fintech opportunities for lower friction and expansion of the Polish payment system into a compatible global payment setup. 

To know more about payment rails across Europe,

Also read: Latvia’s Payment Rails & How They Work – SEPA, BankLink & Mobile Payments Growth

For companies, financial institutions, payment service providers and fintechs looking ahead to leveraging the best of speed, transparency, cost effectiveness and blockchain technology, having the right infrastructure governing the payment ecosystem is a must. Partner with TransFi and grow along with the constant forces of global payments and stand strong on a fast paced economy like that of Poland.  

Frequently asked questions (FAQs)

1. What is Elixir and how does it work?

Elixir is the core payment system in the country which is operated by the National Clearing house (KIR). It processes domestic PLN credit and debit cards and payments for taxes and social insurance. The transactions are cleared in a certain pattern on business days i.e thrice on a working day with settlements managed by central bank’s SORBNET2 system.

2. What is the function of BLIK in Poland?

BLIK is a mobile based system integrated directly into bank apps allowing users to generate one time codes facilitating P2P transfers, in store purchase, ecommerce checkouts and ATM withdrawals as well.

3. What does the future of payments hold for Poland?

The future of payments in Poland seems to be driven by the strong regulatory systems and high adoption rate for new fintech entrants. Platforms and partners like TransFi are facilitating these modern rails over the existing robust infrastructure of Europe as well as countries worldwide.

4. How is SEPA and SEPA instant integrated with Poland’s payment rails?

For standard Euro payments, SEPA credit transfers are used by SEPA Elixir, on the other hand, instant payments can be rolled out via SEPA instant through Euro Express Elixir. This system extensively helps foreign trade, remittances and business payouts.  

5. What is the role of SORBNET2?

Poland’s real time growth settlement system run by the National Bank of Poland, this system is the main facilitator of the country’s large values and urgent transfers. While this system is operated behind the scenes and isn’t directly used, it ensures the settlements of various payment rails mentioned above, ultimately ensuring stability in the payment structure of Poland.