European regulators agree on new rules for SEPA instant payments
Governing bodies in Europe have agreed on new rules to increase the availability of instant payments for customers and businesses across the continent.
European regulators agree rules for instant payments
The rules agreed between the European Council and the European Parliament this week would allow banks and payment service providers (PSPs) that offer standard credit transfers in euros to also start providing instant payments, but not at a price that exceeds the current charges of the standard service.
This would mean that customers and businesses can use the service to transfer money at any time of the day to any account within the EU member states, with the transaction settled in 10 seconds or less.
The ability to facilitate instant payments will also be extended to e-money institutions (EMIs) and payment institutions (PIs), which will be granted access to payment systems via amendments to the settlement finality directive (SFD).
To protect the integrity and security of both standard and instant payments, the governing bodies have also issued a requirement for service providers to install a confirmation of payee function, whereby the beneficiary’s IBAN and name must be matched in order to execute the transaction.
The agreement of the rules this week brings Europe one step closer to delivering a unified instant payments system, following proposals for a mandate put forward by the European Commission in October 2022.
The council says that the action aims to “improve the strategic autonomy of the European economic and financial sector” while reducing “excessive reliance” on third-country financial institutions and infrastructures.
For the customers and businesses set to receive the service, it adds that the rules will improve “the possibilities to mobilise cash-flows” and assist in the creation of added value services.
