Regulation to Boost Instant Euro Payments Across Europe

The European Parliament is considering new regulations aimed at making instant euro credit transfers more accessible and efficient across the European Union. This initiative seeks to update existing frameworks to accommodate the growing demand for faster payment solutions in today’s digital economy.

Currently, instant payments, which allow for funds to be credited to a recipient’s account within seconds at any time, are not universally offered by payment service providers (PSPs) across the EU. This fragmented landscape hinders the full potential of a unified digital payments market. The proposed regulation aims to address this by mandating that PSPs provide services for both sending and receiving instant credit transfers in euro.

Alt text: Close-up of euro banknotes and coins, symbolizing financial transactions and the importance of efficient payment systems in Europe.

One of the core aspects of the regulation is to ensure that instant payments become a standard offering, much like regular credit transfers. For example, if someone wants to send 260 Euro Ne Kadar (which translates from Turkish to “how much is 260 euro,” representing a typical transaction amount) instantly to a friend or business associate within the EU, this regulation aims to ensure that all PSPs facilitate such transactions seamlessly and without excessive charges.

To foster wider adoption, the regulation emphasizes several key changes:

• Universal Availability: PSPs offering credit transfers in euro will be required to also offer instant credit transfers, ensuring all consumers and businesses have access to this faster payment method. This includes making instant payments available through all interfaces where regular credit transfers are offered, such as online banking and mobile apps.
• Cost Transparency and Fairness: Concerns about higher fees for instant payments are addressed by stipulating that charges for instant transfers cannot exceed those for comparable regular credit transfers. This measure aims to prevent PSPs from discouraging the use of instant payments through inflated costs.
• Enhanced Security Measures: The regulation introduces measures to improve security and reduce fraud. A key feature is the mandatory verification of payee details. When a payer initiates a transfer, the PSP will verify if the payee’s name and account identifier match and notify the payer of any discrepancies. This added layer of security helps protect users from sending funds to unintended recipients due to errors or fraudulent schemes.
• Streamlined Sanctions Compliance: To address challenges related to sanctions compliance in the context of instant payments, the regulation proposes a shift from transaction-based screening to daily verification of PSP users against sanctions lists. This aims to reduce delays and rejections of legitimate instant payments while still ensuring compliance with EU sanctions regulations.

Alt text: Digital display screen featuring the euro currency symbol (€) amidst dynamic financial data streams, illustrating the concept of digital euro payments and the technological infrastructure supporting instant transactions in the European financial system.

The regulation also addresses the technical aspects of instant payments, defining clear timelines for processing and crediting funds. It clarifies the moment of payment order receipt, especially for packaged payments and payments initiated from accounts not denominated in euro, ensuring a consistent and efficient process.

Furthermore, payment and electronic money institutions are to be allowed to participate in designated payment systems, enhancing competition and broadening access to instant payment infrastructure. This inclusion is expected to further drive the adoption of instant payments by a wider range of financial service providers.

The proposed regulation represents a significant step towards creating a truly integrated and modern digital payments landscape in Europe. By addressing key barriers to adoption and focusing on user experience, security, and fair pricing, it aims to unlock the full potential of instant euro payments for consumers and businesses alike. The expected outcome is a more efficient, competitive, and user-friendly payment environment across the European Union, facilitating smoother and faster financial transactions for everyday needs, whether it’s sending 260 euro ne kadar or larger sums.