The European Commission is introducing new regulations that make euro money transfers faster, safer and more economical for all eurozone citizens. Starting January 2025, payment service providers (PSPs) will be required to offer their customers instant euro payments, while from today the ability to send instant payments and verification of payee (VoP) is being extended to combat fraud and errors.
The Commission’s announcement
In its announcement, the Commission emphasizes: “This makes instant payments more widespread, safer and more economical for everyone in the eurozone.”
What changes for users
Euro transfers will no longer take days to complete, but will reach the recipient’s account in seconds, at any time of day, even on weekends or holidays. At the same time, banks and payment providers are not allowed to charge extra for an instant payment compared to a traditional credit transfer.
Before each transaction, providers will need to verify that the recipient’s name matches the given IBAN, reducing the risk of errors or fraud. This service is provided free of charge to the payer, ensuring greater security and transparency in transactions.
Participation of new entities in payment systems
The new rules also allow payment institutions and electronic money institutions to participate directly in payment systems, offering their services, such as instant payments, with greater efficiency. This means that citizens will have greater choice and flexibility in their financial transactions, enhancing competitiveness and innovation in the eurozone.
The implementation of these rules is expected to significantly improve the experience of citizens and businesses, making money transfers faster, safer and more economical.
