New European law: Banks are required to implement an instant transfer system within 10 seconds
The European Parliament has decided to require all member states in the European Economic Area (EEA) to implement a real-time euro payment system, starting from 2025.
Instant transfers, also known as Instant Payments, allow the transfer of funds from one account to another within a maximum of 10 seconds, around the clock and throughout the year, including public holidays and weekends. This represents a qualitative leap compared to traditional bank transfers (SEPA) which used to take a business day or more to execute.
Starting from January 2025, all banks must be able to receive instant transfers, and in October of the same year, they will also be required to send them. Beginning in 2027, this obligation will gradually be expanded to include transfers in other European currencies.
Consumers will benefit from these changes through faster and more secure transfers, without additional costs. Among the most notable new features is the automatic matching of the recipient's name with their account number (IBAN), which will be implemented starting October 2025, reducing the likelihood of errors in transfers.
The Austrian Financial Market Authority (FMA) advises customers to familiarize themselves early with the upcoming changes and to take advantage of them through their online banking services. With these developments, digital payment becomes faster, more transparent, and more modern – it truly is a new beginning for the future of financial transactions.