The European Commissioner for Financial Services, Mairead McGuinness, opened Pandora’s box a few days ago, stating that «There is no reason why many citizens and businesses in the EU cannot send and receive money immediately, as the technology that enables this has been available since 2017.”
This statement was but the prelude to a new banking service that should be available to all citizens. Okay, actually it is not new, but the extension of the popular Bizum in all banks. What does not seem to be very clear is whether one of the characteristics that has caused the expansion of this service, the gratuitywill also be mandatory. For now, what the Ursula von der Leyen Commission has announced is a draft regulation that will force banks to offer transfers in just 10 seconds, available 24 hours a day, 365 days a year.
«This facility to send and receive money in seconds is especially important at a time when household and SME bills are rising and every penny counts.McGuinness has indicated.
Today, and as indicated in El Español, only 11% of the transfers made in Europe are instantaneous, compared to 90% in countries such as Brazil or India. In some Member States, this type of operation has a skyrocketing price that can reach 30 euros.
But what do digital payment companies think of these measures? Joe Morley, Vice President and General Manager of TrueLayer Europe, give us your opinion:
“We are glad to see how instant payments are becoming a reality. The benefits of SEPA are reaching people, almost ten years later. The EU still lags behind countries like the UK when it comes to instant payments. It is a challenge, especially for smaller banks, to invest in it, but it is a necessity to enable instant cross-border payments. We have a fantastic common market, but the lack of instant payments is limiting its potential. This is one of the last big pieces to enable efficient trade without borders”.
«In our technological society, where speed and efficiency are the norm, we welcome the European Commission’s initiative to make instant payments mandatory throughout the euro area. Yesterday’s announcement is excellent news for both businesses and consumers.”
“The Commission proposal will address the coverage and high cost issues currently facing instant payments in Europe and allow open banking to finally take off. instant payments and open banking Together they create an alternative payment method that can compete with established methods like cards.”
«Free instant payments must become the new normal for all Europeans. We expect a real “Single Payment Area in Euros” that fundamentally addresses the fragmented market for real-time cross-border payments.”
