Sending money across the euro area will be faster and safer from today, as new EU rules on instant payments come into force, allowing people and businesses to transfer money in euros across the euro area within seconds.
Under the new rules, payment service providers (PSPs) are obliged to offer their clients the service of sending instant payments in euro. And in order to combat payment fraud in euro credit transfers, they provide the service of payee verification (VoP). This makes instant payments more widely available, safer, and more affordable for everyone across the euro area.
The hope is that instant payments will boost Europe’s economy and bring major benefits for citizens and companies. For citizens, money is available immediately, making it far easier to deal with emergencies or splitting bills in social settings. For companies, cash flow management will be improved, as will customer service: by providing an additional payment method to customers, they will save time and reduce costs.
“The Instant Payments Regulation will substantially improve the daily lives of our citizens and businesses by allowing them to send and receive payments instantaneously, round the clock.” said Financial Services Commissioner Maria Luis Albuquerque: ” This will make transactions more secure, with payment service providers required to verify the intended beneficiary and send an alert to the payer in case of error or suspected fraud.”
These are the changes coming in:
- Euro transfers will no longer take days – they will reach the recipient’s account in seconds, at all times – nights, weekends and holidays included.
- Banks and other payment service providers must not charge more for an instant payment than for a standard credit transfer.
- Before a payment is made, providers must verify whether the name of payee (or recipient) matches the IBAN provided, helping people avoid mistakes and scams. This service shall be provided free of charge to the payer.
- New rules also enable payment and e-money institutions to directly participate in payment systems, so they can provide their payment services, including instant payments, more efficiently.
From January 2027, payment service providers outside the euro area will also be required to allow their clients to send and receive instant payments in euro and verify the beneficiary.
