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Instant Payments Regulation EU

European Union

2024

Payments

Overview

The EU Instant Payments Regulation was adopted in 2024 to mandate the widespread availability of instant credit transfers in euros across the European Union. It builds upon the SEPA Instant Credit Transfer (SCT Inst) scheme but makes participation compulsory for banks and payment service providers offering standard euro credit transfers.

The regulation aims to ensure that banks, payment institutions, fintech platforms, and electronic money institutions can both send and receive euro-denominated instant payments 24/7, with funds reaching recipients within 10 seconds. It also introduces safeguards for fraud prevention, including mandatory IBAN-name checks.

Key Obligations

All PSPs offering euro credit transfers must also offer instant credit transfers in euros
Transactions must be processed within 10 seconds at any time, including weekends and holidays
IBAN-name matching is required to detect and prevent fraud

Charges for instant payments must not exceed those of standard credit transfers
Payment institutions must screen transactions against EU sanctions lists in real time

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FAQ

When does the Instant Payments Regulation become enforceable?

It becomes enforceable in a phased manner starting from 2025 for the euro area..

Do all EU countries need to comply?

Yes, all EU member states using the euro must ensure compliance by relevant PSPs.

What is the IBAN-name check requirement?

It ensures the account name matches the IBAN provided, reducing fraud in transfers.

How does this affect fintechs and neobanks?

Fintechs offering euro credit transfers must upgrade infrastructure to support instant payments and meet fraud screening obligations.