- Instant Payments Expansion:
- European governing bodies agree on new rules to increase the availability of instant payments.
- Banks and payment service providers offering standard credit transfers in euros can now provide instant payments without exceeding current charges.
- E-money institutions (EMIs) and payment institutions (PIs) will also gain access to instant payments through amendments to the settlement finality directive (SFD).
- Flexible Transactions:
- Customers and businesses can transfer money at any time within EU member states.
- Transactions are settled in 10 seconds or less, enhancing convenience for users.
- Security Measures:
- Service providers are required to install a confirmation of payee function.
- The beneficiary’s IBAN and name must match for transaction execution, ensuring integrity and security.
- Unified Instant Payments System:
- Agreement on rules brings Europe closer to a unified instant payments system.
- Follows the European Commission’s October 2022 proposal for a mandate.
- Economic and Financial Sector Improvement:
- Action aims to improve the strategic autonomy of the European economic and financial sector.
- Aims to reduce “excessive reliance” on third-country financial institutions and infrastructures.
- Benefits for Users:
- Rules are expected to enhance possibilities to mobilize cash-flows for customers and businesses.
- Anticipated improvement in the creation of added-value services.
