Bank customers in Cyprus will soon be able to send and receive money within seconds, as new EU rules on instant payments take effect this month, at the same cost as a regular transfer, but with much stronger safeguards.

From October 9, all banks operating in Cyprus and across the EU must process payments around the clock, seven days a week, transferring funds between accounts in just a few seconds.

The change stems from the EU’s Instant Payments Regulation, adopted in April 2024, which builds on the Single Euro Payments Area (SEPA) system introduced by the European Payments Council.

The reform aims to end the long-standing delays in crediting payments, ensuring that both individuals and companies, especially small and medium-sized enterprises, gain immediate access to their funds.

It also introduces stricter rules to boost security and confidence in online transactions.

While the requirement for banks to receive instant payments has been in place since January, the obligation to send them becomes mandatory from October 9.  

Under the new framework, all SEPA-area transfers, whether domestic or cross-border, must reach the recipient’s account within ten seconds, at any time of day or night. 

There is no EU-wide ceiling on transfer amounts, allowing banks to set their own transaction limits. However, the regulation establishes a common set of rules and safeguards to ensure the system works efficiently for consumers, businesses, banks and public authorities alike.

At the same time, a second measure will further tighten payment security.

The Verification of Payee (VoP) system, due to be activated by all banks in Cyprus by October, will check that the beneficiary’s name matches the IBAN before a transfer is executed.

According to a report by Philenews, this feature is part of the EU’s wider effort to integrate and secure digital payments, helping customers verify that their money is going exactly where it should.