The Bank of Cyprus has announced the rollout of instant payments, set to launch on October 9, 2025. This new feature will enable customers to send and receive money from any bank within Cyprus or the Single Euro Payments Area (SEPA) almost instantaneously.
Instant payments: Transforming Payment Speed
With the implementation of instant payments, transactions will be processed in just 10 seconds, a significant improvement over the current one to two business days required for traditional bank transfers. This advancement is part of a broader European initiative aimed at enhancing payment efficiency across the continent.
Regulatory Framework and Key Dates
The changes are in line with the European Regulation on Instant Payments, which mandates two crucial deadlines for banks: the ability to receive instant payments by January 9, 2025, and the capability to send them by October 9, 2025. This regulatory framework is designed to ensure that all banks upgrade their electronic systems to include enhanced security features.
Enhanced Security Measures
Among the security features required by the new regulation is a crucial mechanism called Verification of Payee. This system will allow customers to verify that the account number they input matches the intended recipient’s name, thereby reducing the likelihood of errors and fraud. This feature is expected to be fully operational by the launch date in October 2025.
Transaction Limits and Cost Efficiency
While each bank will set its own transfer limits for instant payments, the regulation stipulates that fees for these transactions cannot exceed those of standard bank transfers. This provision, effective from January 2025, ensures that customers can enjoy the benefits of faster payments without incurring additional costs.
Future Innovations and Customer Convenience
In addition to instant payments, banks in Cyprus are exploring the possibility of a shared platform or mobile application that would allow customers to make instant payments using a phone number or email address instead of a traditional IBAN. If successful, this innovative service could see a launch in 2026, further streamlining the payment process.
The introduction of instant payments marks a significant step towards modernising the banking experience in Cyprus, providing both individuals and businesses with faster and more secure transaction options.
