NextFin news, On Wednesday, October 9, 2025, new European Union regulations will require all banks operating within the EU Single Euro Payments Area (SEPA) to process instant payments within 10 seconds, any time of day, seven days a week. This rule applies to both domestic and cross-border euro transfers.
The EU’s Instant Payments Regulation, adopted in April 2024, builds upon the existing SEPA system managed by the European Payments Council. It aims to eliminate delays in crediting payments, ensuring individuals and businesses, especially small and medium-sized enterprises, have immediate access to funds.
Under the new rules, banks must not only receive but also send instant payments, a requirement becoming mandatory from October 9. There is no EU-wide limit on transfer amounts, allowing banks to set their own thresholds, but all transfers must comply with the 10-second processing time.
In addition to speed, the regulation introduces stronger security measures. A key feature is the mandatory implementation of the Verification of Payee (VoP) system, which requires banks to verify that the beneficiary’s name matches the International Bank Account Number (IBAN) before executing a transfer. This system is designed to reduce fraud and increase consumer confidence in digital payments.
These changes affect all banks across the EU, including Cyprus, where the new rules will enable customers to send and receive money instantly at the same cost as regular transfers but with enhanced safeguards. The VoP system is expected to be activated by all Cypriot banks by October 2025.
The reform is part of the EU’s broader strategy to integrate and secure digital payments, facilitating faster, safer, and more reliable financial transactions across member states.
Sources: Cyprus Mail (October 7-8, 2025), European Payments Council, Philenews.
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