Instant Payments in Europe

" 1️⃣ The mandate for instant payments to become obligatory.

2️⃣ The inclusion of both consumers and businesses within its scope.

3️⃣ A requirement that instant payments not exceed the costs of traditional credit transfers, addressing the previous significant price disparities where instant transactions could cost as much as €12 (!) in some instances.

4️⃣ An obligation for banks to verify that the account numbers correspond with the payment beneficiaries' names and to issue warnings for potential errors or fraud.

5️⃣ A shift from individual transaction screening to a mandate for instant payment providers to screen their clients against EU sanctions lists at a minimum of once daily.

6️⃣ The provision for Payment and e-money institutions (PIEMIs) to have direct access to payment systems, thus eliminating the need for bank sponsorship.

This represents a major departure from the traditional model, where banks were the principal access points to EU payment systems.

Europe really needed this in order to keep up with Instant Payments frontrunners like Brazil (PIX), and India (UPI). "

Author

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