What is the new EU Instant Payments Regulation?

Portugal Business News - Valerie Charoux
2 days ago
2 min read

Financial News Europe - Here is all about the new EU Instant Payments Regulation where all banks in the EU must process Euro transfers within 10 seconds, at no extra cost, while banks based in non-euro countries have until 2027 to comply:

Here is all about the new EU Instant Payments Regulation:

The new EU Instant Payments Regulation aims to create a Single Payment Area where individuals and businesses can make cross-border payments as easily and safely as they would in their own countries, without paying additional charges.

The EU Instant Payments Regulation, that entered into force on October 9, 2025, requires that Payment service providers in the euro area have to send instant payments in euro and verify the intended beneficiary.

What is the EU Instant Payments Regulation for banks in non-euro countries?

For banks based in non-euro countries, the new EU Instant Payments Regulation enters into force in 2027. This means that Payment service providers outside the euro area will also be required to allow their clients to send and receive instant payments in euro and to verify the beneficiary.

What will the EU Instant Payments Regulation change?

1 - Instant Euro payments will be universally available

2 - Instant Euro payments will be accessible at no extra cost

The new EU Instant Payments Regulation makes it mandatory for Payment Providers not to charge more for euro instant payments than for traditional money transfers in euro.

3 - Instant Euro payments will be more trustworthy

The new EU Instant Payments Regulation makes it mandatory for Payment Providers to check whether the IBAN matches the name of the beneficiary and to alert the payer of a possible mistake or fraud before the instant payment is made.

4 - Instant Euro payments will be screened for sanctions

The new EU Instant Payments Regulation will ensure the screening of sanctions becomes more efficient, while preserving its effectiveness with a harmonized procedure to ensure that instant payments that involve sanctioned persons are not processed.