Panayiotis Rougalas
Starting Thursday, October 9, all Eurozone banks, including those in Cyprus, will be required not only to process instant payments but also to verify the recipient’s name and IBAN when executing transfers.
This marks the end of the transition period for the EU’s instant payments project, which began on January 9, 2025, officially ushering in a new era for traditional banks. The move brings them closer to the sleek, real-time services once associated mainly with fintech companies.
Alongside faster payments, banks will add a new safety layer, alerting customers if the system detects suspicious activity before a transfer is completed.
In practice, that means that starting Thursday, a Bank of Cyprus customer can send money to a Eurobank account within seconds, and vice versa. The fee will remain the same as before (so, not free), but payments will now clear instantly instead of taking one to two business days.
The system will also automatically cross-check the recipient’s name and IBAN, warning the sender if anything looks off.
Most importantly, these instant and secure transfers will now apply not just within Cyprus but across the entire Eurozone, with the same safety checks and standard fees.
The European Parliament approved the new rules in February 2024, ensuring that money sent by individuals or businesses reaches recipients immediately anywhere in the EU. The regulation also emphasizes strong fraud prevention and verification measures, with no extra charge for instant payments.
Fighting Fraud
According to the Association of Cyprus Banks, the new “Verification of Payee” (VoP) service is part of the EU’s wider plan to make digital payments safer and more uniform across Europe. It helps payers confirm that their money is going exactly where it’s supposed to go.
When making a transfer online or through a mobile app, users will enter the recipient’s name and IBAN. The system will then check whether those details match the bank’s records. Depending on the outcome, one of four messages will appear:
- Match – The name and IBAN match perfectly, and the transfer goes through.
- Close Match – There’s a small typo or discrepancy; the system suggests the correct name before proceeding.
- No Match – The name doesn’t correspond to the IBAN. The user gets a strong warning of possible fraud.
- VoP Not Possible – The system can’t verify the details due to a technical issue or inactive account, so the payer is advised to proceed with caution.
The association says this verification process will boost consumer confidence, reduce costly errors, and strengthen protection against online scams.
“Iris” in Six Months
Even more convenience is on the way. Within a few months, payments in Cyprus will be possible using just a phone number; no IBAN will be required.
Similar to how Bank of Cyprus customers use QuickPay or Eurobank clients use ContactPay, the new feature will allow transfers between different banks through one shared platform, modeled after Greece’s “Iris” system.
It’s not yet clear whether Cyprus will adopt a single national system or maintain separate options within each bank’s app, but the rollout is expected to take a few more months to complete.
*This article was translated from its Greek original.
