Real-time transfers as the new standard

SEPA Instant Payments have been possible since 2017, but are not yet used very frequently. Regulation 2024/886, which the EU published on 8 April, is now intended to strengthen this type of transaction and establish it as a new standard. The regulation obliges all credit, e-money and payment institutions that offer their customers SEPA payments to be able to both receive and send them in real time. To do this, financial institutions must fulfil certain requirements.

• Real-time transfers must be possible around the clock and be received by the payee within 10 seconds.
• The costs for real-time credit transfers may not be higher than for conventional SEPA credit transfers.
• The name of the payee stated in the transfer must be matched with the IBAN.
• For harmonised sanctions screening, financial institutions must compare their customer lists with the EU sanctions list on a daily basis.

The obligation for financial service providers to be able to both receive and send real-time transfers will apply from January and October 2025 respectively. Institutions should use the time until then to prepare comprehensively, as the EU regulations affect numerous areas of an institution.

In the technical and operational area, the IT infrastructure must be expanded so that systems are available around the clock and ensure that the payment process is completed within 10 seconds. It must also be possible to check the payee and screen for sanctions within seconds. Real-time transfers lead to increased intraday and short-term liquidity requirements, which should be taken into account in liquidity management. In liquidity stress scenarios, the interplay between real-time transfers and potential reputational crises should be taken into account. This allows potential risks to be identified and mitigated. In order to price the increased use of real-time transfers appropriately, it is necessary to review and adapt the product strategy and cost allocation. Both banks and non-banks should also be prepared for additional reporting obligations from 2025 and new requirements for safeguarding funds.  

Our German-language brochure "Echtzeitüberweisungen: Alles bereit für den Go-Live?", which you can download here, takes a detailed look at the above-mentioned tasks and requirements. Our experts have also compiled recommendations for action and helpful tips for you.