The EU’s Instant Payments Regulation is a new regulation that aims to accelerate the roll-out of instant payments in Europe. The regulation, which entered into on April 8, 2024, covers credit transfers denominated in euro within the European Union. Specifically, the CBC outlined what payment service providers (PSPs) must do, by when, and why compliance is essential.

According to the announcement, banks in Cyprus must enable the receipt of instant payments, aligning with the regulation’s aim to modernise and streamline financial transactions by January 9, 2025. This will be followed by a requirement for banks to also send instant payments by October 9, 2025. For payment institutions and electronic money institutions, the timeline extends to April 9, 2027, by which date they must both receive and send instant payments.

To ensure uniformity across payment methods, the CBC explained that all PSPs must offer instant payment options through the same channels used for traditional credit transfers by October 9, 2025. Additionally, starting January 9, 2025, charges for instant payments must not exceed those applied to standard credit transfers. However, fees for supplementary services will still be permissible. Moreover, regulatory compliance extends beyond transaction efficiency.

From January 9, 2025, PSPs are required to screen their customer databases daily against the latest EU sanctions lists, ensuring that targeted financial restrictive measures are adhered to. The CBC also said that PSPs must provide a payee verification service, allowing customers to confirm the intended recipient of payments by October 9, 2025.

Source: Cyprus Mail