The Regulation on instant payments: a revolution in transfers within the European Union

The Instant Payments Regulation (IPR), adopted in 2024, initiates a major transformation of bank transfers in Europe. By 9 January 2025, euro area payment service providers will have to receive and process instant transfers in less than 10 seconds, with costs aligned with those of conventional transfers. This milestone marks a key step towards a faster, secure and competitive payment ecosystem, strengthening European sovereignty in the face of international solutions.

FACTS

• The Instant Payments Regulation (IPR), adopted in March 2024 by the European Parliament and the Council, marks an important step in the modernisation of payments in Europe.
• The first implementation deadline shall enter into force on 9 January 2025, obliging payment service providers (PSPs) operating in the euro area to:
• Receive instant transfers in real time and credit the funds to the beneficiary's account under 10 seconds.
• Align the costs of instant transfers with those of conventional transfers in accordance with the rules of the European Central Bank.
• By 9 October 2025PSPs will also need to be able to send instant payments, supported by a free beneficiary verification service to ensure security and accuracy.
• Significant advances include the integration by Raiffeisen Bank of a Worldline cloud solution in May 2024, and its adoption by Guaranteed BBVA International (GBI) in November.
• Maturities for payments involving non-euro area Member States will extend to 2027.

ISSUES

• Accelerating payments in Europe : The IPR aims to transform transfers into an instant transaction, replacing the 2 to 3 business days.
• Increased competition between providers The obligation to offer instant services at competitive costs pushes PSPs to upgrade their infrastructure to remain attractive.
• Enhanced security The free verification of beneficiaries responds to the need to ensure rapid transfers without compromising reliability.
• Technological adoption : Actors like Worldline play a key role in providing tailored solutions, illustrating the growing importance of technology partnerships in this area.
• Harmonisation at European level This regulation is part of a comprehensive strategy to standardise payment standards in the European Single Market.

PERSPECTIVE

• In a context where consumers' expectations turn to fast and reliable digital solutions, IPR is a major turning point. Europe, still dominated by American solutions such as Visa Direct or PayPal, seeks to strengthen its financial sovereignty with native solutions.
• Payment modernization is also part of a global dynamic: in Asia, instant payments are already widely adopted, and in Latin America, systems like Pix in Brazil are redefining usage. In Europe, the acceleration of IPR could become a model for other regions seeking efficiency and security in payments.
• With clear deadlines and concrete technological progress, this regulation places Europe on the path to a more fluid, competitive and sovereign payment ecosystem.

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