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Instant transfer, for the EU, should be the norm: Here’s how

As Parliament prepares to debate Lega’s proposal to raise the cap on cash payments to €10,000, The European Commission is going in the opposite direction. The goal is to give European citizens and European companies a reliable (plus) alternative to cash by speeding up one of the most accessible (and traceable) payment methods such as bank transfers in some way. Comfortable, safe and barrier-free.

the middle? The Instant bank transfer. It does exist, that’s right, but at the beginning of the year it was used for only 11% of transactions between IBANs. there first barrier To a broader use of the tool is to use cost: Instant bank transfers are paid, often more than regular wire transfers. This is what Europe wants “Removing barriers that prevent instant payments and their benefits from becoming more common” For all citizens and businesses in the European Union and the European Economic Area (EEA), Align the spot rate with the normal bank transfer rate.

Between the two there is At least one major difference: Classic bank transfer transfers only in certain hours And exclusively on days a jobwhere a A “traditional” bank transfer made on Friday often arrives on Monday. Not a suitable system to pay for a business or a professional, for example, because even the moment you go beyond those limits you have to face IBAN hurdlemade up – inevitably, let it be clear – from many, even a very large number of numbers for a system to use anywhere and under any circumstances as you imagine Europe.

In this regard a Satispay style system So to speak, the new Italian unicorn is so effective that it has attracted a barrage of foreign capital, and it still has a competitive advantage not recently, and the Commission does not seem to have taken over, at least for the time being. Meanwhile, the proposal consists of amending and updating the 2012 European Credit Transfer Regulation SEPA, consisting of Four hinges:

  • Make instant euro payments globally availableThus, banks and institutions that already offer regular bank transfers will be obligated to provide instant bank transfers as well
  • Make instant euro payments convenientwith the service provider’s commitment to ensure that the instantaneous price does not exceed the normal price
  • Make them saferprovides for the supplier’s obligation to verify before issuing the IBAN and the beneficiary name provided by the payer.
  • eliminate clutches In processing immediate payments in Euros while maintaining the effectiveness of screening persons subject to EU sanctions, with at least daily verification of the customer base.

Mered McGuinness, European Commissioner for Financial Services, said:

The shift from “next day” transfers to “ten second” transfers is seismic and comparable to the shift from mail to email. However, today approximately nine out of ten euro transfers are still processed as traditional “slow” transfers. There is no reason why many EU citizens and businesses cannot send and receive money instantly, the technology to make instant payments has been around since 2017. This functionality to send and receive money in seconds is especially important at a time when the bills for families and SMEs are rising and every penny counts. . This initiative will directly benefit EU citizens and companies.

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