Instant Transfers: What Changes from January 9th

Instant Transfers: What Changes from January 9th

The increasing digitalization of the banking sector has led to a significant evolution in payment methods, making instant transfers an increasingly present reality. From 9 January 2025 , many things are set to change as new European rules come into force that will eliminate extra costs on instant payments. In this article, we will examine what these changes entail and how they could affect consumers and businesses.

Table of Contents

Introduction to Instant Transfers

What Are Instant Transfers?

Instant transfers are a modern way of transferring money that allows transactions to be completed in real time . Unlike traditional bank transfers, which can take several business days to clear, instant transfers allow the recipient to receive the funds almost immediately, usually within a few seconds, regardless of the time of day or day of the week. This type of transfer is available 24/7 , making them extremely convenient for those who need speed and transparency in their financial transactions .

The speed of instant transfers is made possible by the advanced technological infrastructure that connects banks at national and international level. In many regions, instant transfers are part of the SEPA (Single Euro Payments Area) system, which facilitates payments in euros between member countries, while maintaining high standards of security and reliability.

Additionally, instant transfers are becoming increasingly popular due to their ability to improve cash flow management for businesses and individuals by providing a secure , efficient and transparent payment method. With the growing adoption of this technology, instant transfers are expected to become a critical component of the global financial system.

Differences between Instant and Traditional Bank Transfers

Instant and traditional bank transfers differ primarily in the speed and availability of the funds transfer. While traditional bank transfers can take one to three business days to complete, instant transfers allow funds to be credited to the recipient’s account almost immediately, usually within seconds. This crucial difference makes instant transfers especially useful in emergency situations or when immediate liquidity is needed.

Another distinguishing feature is the time availability . Instant transfers are operational 24/7, including holidays and weekends, while traditional transfers are generally tied to the banks' business days and hours, thus slowing down the process if sent during the weekend or holidays.

In terms of security, both types of transfers are considered safe . However, instant transfers, being irrevocable , require a meticulous verification of the transaction details before confirmation, since they cannot be cancelled once initiated. This can be seen both as an advantage in terms of immediate finality of the transfer, and as a potential disadvantage in case errors were made while entering the data.

What's new in the 2025 European Regulation on Instant Transfers

Updated Rules for SEPA Instant Transfers

The European regulation 2025 introduces uniform rules within the SEPA area (Single Euro Payments Area) to simplify instant payment operations and facilitate the use by consumers and businesses of an instrument that until now was burdened by an additional cost (fixed or variable). Greater adaptability is expected that will improve the flow of cross-border transactions in euros.

The new European regulations will stop the extra costs for instant transfers, which will have the same cost as ordinary ones. Therefore, there will be no more additional costs for consumers who want to use this payment method.

Furthermore, from 9 January 2025, all banks will have to offer this service to their customers and there will be a verification obligation (i.e. the correspondence between IBAN and the name of the beneficiary) to allow greater transparency and increase trust in this payment instrument, in order to build a single market for payments at European level.

Advantages and Disadvantages of Instant Bank Transfers

The Benefits of Instant Bank Transfers for Consumers

Among the main advantages of instant transfers are the immediacy and certainty of credit , perfect for situations that require urgency. This can also benefit the cash flow of companies, ensuring timely payments and receipts. In fact, an instant transfer can be made at any time of the day or night and therefore can also be used as a payment method in stores, to the detriment of other payment methods, such as cash, checks and favoring competition with credit cards.

Potential Disadvantages and Security Considerations

While instant transfers offer many advantages, there are also potential disadvantages to consider, particularly when it comes to security. One of the main risks associated with instant transfers is that they are irrevocable . Once you send the money, you cannot reverse the transaction, which can be problematic if you enter the recipient’s details incorrectly or if fraud occurs. Additionally, the speed of the transactions could attract phishing attempts or online scams , as criminals may try to exploit the speed of the transfers to steal funds before they are discovered.

To mitigate these risks, it is essential that banks and end users implement strong security protocols. The new 2025 regulation includes significant security improvements, such as the use of advanced encryption technologies and two-factor authentication , to protect consumers and ensure the security of transactions. However, it is still essential for users to remain vigilant and adopt safe practices, such as carefully verifying recipient details and immediately reporting suspicious activity.

How to Make an Instant Bank Transfer

Step-by-Step Procedure to Make an Instant Bank Transfer

Making an instant transfer is a quick and easy process that can be completed in just a few steps through your banking app or your bank's online portal. Here's a step-by-step guide to help you complete a successful instant transaction:

  1. Log in to your banking platform: Start by logging into your account through your bank's mobile app or website. Make sure you have secure access and have enabled two-factor authentication, if available.
  2. Select the Instant Deposit option: Once you're logged in, navigate to the payments or transfers menu and select the Instant Deposit option. It may be called "instant deposit" or "instant transfer."
  3. Enter recipient details: Fill in the required fields with the recipient's complete information, such as name, IBAN and reason for transfer. Pay special attention to avoid mistakes, as instant transfers are irrevocable.
  4. Verify transaction details: Before confirming, carefully review all the details you entered. Make sure the amount, recipient, and all other information are correct.
  5. Confirm Transaction: Proceed to confirm the transfer. You may be asked to enter an authentication code or use a security device to complete the transaction.
  6. Receive confirmation of successful transfer: After confirmation, you should receive an immediate notification that the transaction was successful. The recipient will be able to access the funds within seconds.

The Future of Instant Transfers in the European Landscape

Instant Payments Trends and Forecasts

Instant transfers are set to grow in popularity due to their convenience . Digitalization and the evolution of new payment technologies will continue to shape the future of financial transactions, driving greater adoption of these financial instruments.

The Unimpresa Research Center has detected an increase in online transfers, with estimates indicating transactions for a total of 8 thousand billion euros in 2024, marking an increase of 5% compared to the previous year. This positive trend is expected to continue, encouraged by new regulations that make instant transfers more easily accessible. Giuseppe Spadafora, vice president of Unimpresa, highlighted how this innovation can improve the efficiency of the Italian economic system .

In short, the use of “ plastic money ” and digital transactions , including transfers, apps and other tools, continues to grow, albeit at a slower pace than in previous years. According to a recent ECB study, almost half of transactions ( 48% ) in the euro area are made with cards or apps, a figure that in Italy stands at 38% . Despite this, there has also been a 9% decline in the use of cash in the last two years.

After an initial period of resistance, the retail and professional services sector has largely adopted digital payments, also helped by lower fees. Meanwhile, banks are facing increasing competition from new, online-only players offering low-cost services, particularly appealing to younger customers.

Conclusion

In conclusion, the new regulation on instant transfers promises to simplify transactions and make them more accessible at a European level. With improvements in costs, speed and security, instant transfers are quickly becoming the standard for efficient and secure payments.

Even on Elettroclick, you can benefit from instant bank transfer payment and reduce waiting times for the preparation of your order. In fact, instant payment allows customers to use this payment method to take advantage of tax breaks and deductions, while allowing the company to receive the money immediately compared to an ordinary bank transfer, reducing delivery times.

Comments (0)

No comments at this moment
Only registered and logged customers can add comments
Product added to wishlist
Product added to compare.