On 23 September 2025, the Central Bank of Ireland (Central Bank) announced that its second Innovation Sandbox Programme (Programme), themed Innovation in Payments, is open for applications.
This six-month sandbox programme, which begins in January 2026, aims to foster innovative solutions that deliver safer, faster, greener, and more inclusive payments for households and businesses, while giving the Central Bank early insight into emerging risks and supervisory questions.
Through the Programme, the Central Bank aims to provide regulatory advice and support to firms on their innovative projects, in line with its public policy objectives.
The Programme also aims to facilitate the development of new ventures and business models that solve challenges identified in the sandbox theme and facilitate the faster and safer deployment of substantially new technologies, products, or services.
At the end of the Programme, the Central Bank will publish a report sharing key learnings from the Programme.
Sandbox Programme Framework
- Programme of workshops: Participants will engage in workshops on specific topics relevant to the theme. The topics will be relevant to participants and tailored to their needs and requirements as much as possible.
- Dedicated support: Each participant will engage regularly with their dedicated Sandbox Relationship Manager, who will act as their point of contact to oversee and coordinate participation throughout the programme. The Sandbox Relationship Manager will also liaise with a broad range of internal Central Bank subject matter experts to provide comprehensive regulatory advice and support as necessary.
- Access to Data Tools: Each participant can access a Data Platform offering data sets and tools relevant to the theme to test and develop their innovation.
The methodology and delivery of this Programme will be subject to continual assessment and impact review.
Problem Statements
- Inclusive Access to the Digital Economy – How can
everyone confidently engage in the digital economy?
The rapid shift to digital payments is transforming how people access and manage money, yet some consumers (including those in vulnerable circumstances) remain excluded. Limited access and unintuitive user experiences prevent segments of society from participating fully in the digital economy, creating barriers to financial inclusion and financial well-being. - Frictionless and Transparent Money Movement – How
can payments be made seamless, transparent, and efficient to
benefit both consumers and businesses?
Consumers and businesses increasingly expect instant, low-cost payments that work seamlessly across banks, providers, platforms, and borders. Fragmentation can harm efficiency in payments, resulting in higher costs for businesses and households. Creating interoperable, real-time payment systems with full transparency on costs, speed, and settlement can deliver greater control, confidence, and efficiency. - Resilient and Secure Payments – How can payments
be strengthened to reduce fraud, ensure integrity, and enable
faster, safer, and more accessible payments?
The expansion of digital and cross-border payments introduces greater risks of fraud, cybercrime, and systemic instability. Harnessing advanced technologies (including AI, real-time monitoring, and collaborative fraud detection) can prevent threats before they affect consumers, reduce financial crime, and protect the integrity of the financial system while enabling faster, more accessible payments. - Safe Integration of Emerging Payment Technologies
– How can new technologies be safely adopted while protecting
consumers and maintaining system-wide security and
stability?
Emerging technologies and infrastructure (such as AI-powered financial services, tokenised payments, and stablecoins) offer potential benefits, but can also introduce risks around privacy, interoperability, security, compliance, and consumer protection. Without careful integration, these innovations may undermine financial stability and trust.
Sandbox Frequently Asked Questions
There is a helpful section on Frequently Asked Questions on the Central Bank website, which broadly covers the following matters:
Participant suitability
The Programme is open to applications from all sectors of the financial system such as authorised incumbent firms, start-ups scaling innovation, fintechs seeking authorisation, technology businesses providing services to financial firms and academic commercialisation projects.
It is also open to applications from standalone entities, partnerships and/or research projects that are focussed on the commercialisation of research. However, it is unsuitable for an innovation at a very early stage of development where, for example, a model has not yet been built.
The Central Bank does not help participants find partners to participate in the Programme or match participants together for projects.
Central Bank expectations
The Central Bank expects participants to attend the workshops, dedicate sufficient time and resources for meaningful engagement and demonstrate a sufficient level of subject matter expertise.
Whilst applicants do not have to be Irish-domiciled, the Central Bank expects that applicants are selling, or intend to sell, their service or product in the Irish market.
Benefits for participants
Enhanced understanding of regulatory frameworks. Although the advice and support provided within the programme are not legal advice and do not relieve any of the participants of their legal/regulatory obligations, the programme should provide participants with the opportunity to deepen their understanding of the regulatory frameworks applicable to their specific innovation, covering a broad range of domestic and European regulations, standards, guidelines and supervisory expectations.
Data Platform access. The Data Platform provides a range of resources, including pre-loaded datasets and integrated developer environments. Available data resources will relate to the theme and enable participants to explore, innovate, and build solutions for a diverse set of challenges. The Data Platform will also provide participants with access to relevant technical documentation/tutorials.
Cost: There is no charge to participate in the programme.
Other: Once a participant's name is published, it may mention that it is participating in the Programme provided it makes clear that the Central Bank does not endorse the participant or its innovation. The use by participants of any crest, logo or mark of the Central Bank is prohibited.
Information for Applicants
The Programme will commence in January 2026.
Applications for the Programme will be accepted until 17:00 on 10 November 2025.
The Central Bank's website provides additional guidance on applying for the Programme, an application form and Frequently Asked Questions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
