The European Union is set to revolutionize the way payments are made within the EU by introducing super-fast payments for all consumers and companies in the future. This will allow customers to transfer money to an account in another Member State within ten seconds, at any time, with no additional costs compared to traditional transfers.
In addition to instant transfers, financial institutions offering euro transfers must also verify that the IBAN provided by the payer matches the name of the beneficiary within ten seconds. This will help prevent errors or fraud and strengthen confidence in cross-border transactions.
While instant transfers are already possible within the EU on a voluntary basis, there are still operational challenges to overcome as banks move towards implementing this regulation. However, with Belgium leading the way with over 20% of all individual transfers being made instantly, there is hope that these challenges will be overcome soon.
The regulation has been agreed upon by all Member States and they have twelve months to implement it. Member States where the euro has not been introduced will have a longer transition period to apply the rules for their financial institutions that offer regular transfers in euros.
This move towards super-fast payments will make it easier for businesses to operate in foreign markets and for individuals to share expenses with friends in other European countries, ultimately boosting economic growth and integration within the EU.