The European Commission wants to facilitate instant money transfers

The European Commission wants to facilitate instant money transfers

Facilitate money transfers in euros at any time of the day and night. This option could become mandatory for all banks in the EU. The European Commission presented proposals to this effect on Wednesday.

The idea is to ensure that all instant payments are affordable, secure and completed in less than 10 seconds.

The reason we went ahead with this project is that relying on the market to make it happen would take far too long and Europe doesn’t want to be left behind. She wants to be a leader in this field“, explains the European Commissioner in charge of financial services. Mairead McGuinness also compares this proposal as the passage from postal mail to electronic mail.

According to the Commission, only 11% of all euro transfers made in the EU are instantaneous. Some bank transfers can take up to three days.

The European Consumers’ Organization (BEUC) welcomes this announcement. The organization points out that the technology has been around for several years but the banks have not kept up. Financial institutions will have to offer this service at the same price as a transfer. In other words, it will be free in a very large number of situations, welcomes the association.

Anna Martin, a specialist in financial matters at BEUC, sees another benefit in this.

We will also have a better fraud prevention. This means that there will be a verification of the correspondence between the IBAN number and the name of the beneficiary and that if this is not the case, the payment will not be made.“, she explains.

As a first step, the European Parliament and the Member States must approve the proposal and negotiate the modalities and timetable for implementation.