The European Council has adopted a regulation that will make instant payments fully available in euro to consumers and businesses in the EU and in EEA countries.
The new rules, agreed by the Council and Euopean Parliament last year, will allow people to transfer money within ten seconds at any time of the day, including outside business hours, not only within the same country but also to another EU member state.
Payment service providers such as banks, which provide standard credit transfers in euro, will also be required to offer the service of sending and receiving instant payments in euro at no extra charge.
The rules will come into forces in two stages, with a shorter transition period in the euro area and a longer one in EEA countries.
Not only will the move make instant euro payments universally available and affordable, it will also increase trust thanks to an obligation on providers to verify the match between the IBAN and the name of the beneficiary provided by the payer.
The rules are also designed to help European payment firms take on US giants Visa and Mastercard.
Says a statement: “The new rules will improve the strategic autonomy of the European economic and financial sector as they will help reduce any excessive reliance on third-country financial institutions and infrastructures.”
