A plan by the three remaining retail banks to launch a new mobile based payments system in the Irish market has been abandoned.

Synch Payments, which was seen as a potential rival to Revolut and N26, said today that plans to launch its Yippay app into the Irish market are no longer feasible.

It said it had reached the difficult decision to cease Synch operations following a careful and considered review of its business plan.

In a statement, it added that a combination of factors has contributed to an elongated timeframe to launch which makes the original proposition no longer viable.

Synch was established in 2020 by AIB, Bank of Ireland, Permanent TSB and KBC Bank Ireland with the intention of bringing a simple, industry wide mobile instant payment service to the market for all payment types, based on an innovative digital solution.

But it has suffered a series of setbacks since.

KBC withdrew from the project, after it made the decision to exit the Irish market

Synch also had its initial application for competition clearance from the Competition and Consumer Protection Commission (CCPC) rejected due to the provision of insufficient information.

Its second submission was escalated to a full in-depth Phase 2 probe by the CCPC, before it was later granted clearance last year, subject to certain binding commitments.

However, in July Synch revealed that it had been told by the Central Bank that it would require authorisation as an account information service provider and a payment initiation service provider, a process that would have added considerably to the roll out timeframe.

In response to Synch's decision to pull the plug on its plans, the Central Bank said today that an effective authorisations process is crucial to protect consumers within the financial system.

"Any company offering this type of payments service requires appropriate authorisation and in this case, Synch was engaging with us but had not started the application process," the statement said.

"We stand ready to promptly engage with all firms seeking to be authorised in Ireland," it added.

The decision by the banks to end the project will be seen as a significant development for Revolut, which holds a significant portion of the instant payments market in Ireland.

However, it will be a blow to consumers who will not have the option of another widespread mobile payment system to use.