The European Commission unveiled a proposal on Wednesday aimed at requiring banks across the European Union to offer instant euro payments that complete in under ten seconds every day of the week. The plan comes in response to the fact that instant transfers, which are available through platforms such as Bizum, currently represent only a small fraction of annual euro transfers, about 11 percent. The move seeks to boost speed and accessibility in cross‑border and domestic payments alike to support rapid commerce and financial activity across the bloc.
“Money should be able to change hands quickly with a click,” the proposal argues, underscoring that Brussels is pursuing binding rules precisely because natural market dynamics may take far too long to deliver this shift. While the details still require negotiation between the European Parliament and the member states, the intention is clear: speed up payment options across the Union and create a consistent standard that banks must meet.
Instant payment services have penetrated EU markets unevenly. In several member countries the feature is not yet available, while a handful of markets experience higher costs from payment institutions than those charged for traditional transfers. This uneven uptake underscores the rationale for a coordinated regulatory push that can harmonize access, reduce fragmentation, and support broader financial inclusion across all member states.
commission cap
One of the proposed measures is to set a cap on the commissions charged by payment service providers for instant transfers. The idea is that these fees should never exceed the cost of a conventional transfer performed by the same institution. A clear financial guardrail would help ensure that instant payments remain affordable and attractive for both individuals and businesses across the EU.
The proposal also calls for payment service providers to offer and maintain access to euro transfers, enabling the movement of funds with a speed and reliability that meets the new standard. This is seen as a foundational step toward a future where instant euro transfers become a routine option rather than a rare convenience.
Security remains a central pillar of the plan. Strengthening the safety of instant payments is viewed as essential to earning and preserving customer trust, whether the users are individuals, small businesses, or larger corporate clients.
Under the draft rules, banks and payment providers would be expected to verify critical details before processing a payment. Specifically, the system would require verification that the recipient’s bank account number (IBAN) and the beneficiary details align correctly, and it would include mechanisms to alert the payer if errors or suspected fraud are detected. This proactive approach is designed to minimize mistakes and protect users from fraudulent activity as instant payments accelerate transaction flows.
Another important element involves alignment with sanctions screening. The European framework aims to streamline control procedures so that sanctioned individuals are not able to move money within the union through instant transfers. To avoid delaying legitimate transactions, providers would be asked to maintain up-to-date sanctions data for their customers, with updates occurring at least once daily. The goal is to keep the system fast while maintaining rigorous compliance with EU-wide sanctions regimes.
As the plan stands, the public balance sheet shows that a relatively small share of transfers is currently blocked for reasons that are not consistently justified. The European authorities hope that the new rules will reduce the number of erroneous denials and improve the overall quality and reliability of instant payments across the euro area.