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Starting on January 9, 2025, Cyprus will join the rest of the SEPA zone (33 countries) in offering instant bank transfers, revolutionizing how payments are made.
According to a report by Panayiotis Rougalas in today's 'Oikonomiki', this means that when a person sends money within Cyprus or abroad, the funds will reach the recipient's account within 10 seconds, 24 hours a day, instead of taking one to two days as it does now. This change follows a European regulation adopted in November 2022, which mandates that all SEPA member states implement instant credit transfers.
The new rule will affect not only regular bank customers but also businesses, making transactions for things like orders much quicker. It’s important to note that this isn’t just about remittances; it applies to all types of bank transfers. Payment service providers will also need to improve security measures to prevent fraud and ensure money reaches the correct account, with additional services to verify the identity of the recipient.
However, this regulation is not the same as Greece's IRIS platform, which allows payments using just a phone number. While Cyprus won't have this system immediately, a similar application is expected by the end of 2025. Currently, Cyprus banks offer instant transfers, but only if both the sender and recipient are with the same bank. Greece’s IRIS system allows instant transfers across different banks using just a phone number or QR codes.
Additionally, by October 2025, another regulation will require providers to offer a payee verification service, adding another layer of security for instant payments.
This regulation is expected to significantly improve the payment experience for both individuals and businesses in Cyprus, making transactions faster and more efficient.
