EU Adopts Rules for Instant Payments: Money Will Reach Within 10 Seconds
The European Council has approved new regulations that will make instant payments in euros fully accessible to consumers and businesses in the EU and EEA countries. According to the announcement published on the European Council's website, transferred funds will reach the recipients' accounts within 10 seconds at any time of the day, not only within one country but also between EU member states.
Under the new rules, payment service providers dealing with standard euro transfers will be required to conduct instant payments without any additional fees, both from the sender and the recipient of funds. "The fees applicable to instant payments (if any) should not exceed the fees applicable to standard credit transfers," the announcement states.
This step will not only make instant euro payments widely accessible and cost-effective but will also enhance trust in them by obligating providers to verify the correspondence between the IBAN and the recipient's name provided by the payer, significantly reducing the likelihood of errors in fund transfers.
The rules are also intended to assist European payment companies in competing with American giants Visa and Mastercard.
"The new rules will enhance the strategic autonomy of the European economic and financial sector, as they will help reduce excessive dependence on financial institutions and infrastructures of third countries," the statement says.
The new rules will take effect after a transitional period, which will be shorter in the eurozone and longer in non-euro area EU countries that require more time for adaptation. However, European officials have not yet specified the exact implementation timelines for the new regulation.
The Gaze previously reported that as part of a strategic partnership, the international payment giant Visa introduced Visa Direct capabilities for the crypto industry, allowing users to withdraw cryptocurrency directly using debit cards.
The service will enable users in more than 145 countries worldwide to seamlessly convert their cryptocurrency assets into local fiat currencies in real-time. To withdraw funds, users will need to utilize the Visa Direct service. According to the company, funds can be transferred within 30 minutes or even faster, which is a significant advantage compared to traditional banking methods that can take several days. This will particularly expedite currency conversion and fund transfers abroad.