A new era of secure, fast and accessible payments
The speed of payment services is constantly evolving. Instant payments are becoming a popular way to pay across Europe and soon, all banks in the eurozone will be required to offer them. A new regulation by the European Parliament mandates that, starting January 9, 2025, banks must receive instant payment, and from October 9, 2025, they must also send them.
Outside the eurozone, instant payments in euros will become available two years later.
List of banks currently offering instant payments and rollout timelines for the rest
Open banking
In addition to instant payments, open banking has also expanded across Europe. It enables the secure sharing of financial data between banks and third parties (such as fintech companies) through APIs (Application Programming Interfaces).
This concept was introduced by the EU PSD2 directive, which paved the way for new services in the field of payments and financial management:
- PISP (Payment Initiation Service Providers): with the customer's consent, third-party providers can initiate payments directly from the customer's bank account - a new payment method Initiated bank transfer.
- AISP (Account Information Service Providers): with the customer's consent, third-party providers can access and analyze account and transaction data to offer personalized financial advice or provide a clear overview of spending.
From standard to instant bank transfers
Standard bank transfers
Standard bank transfers rely on manually entering payment details, which can easily lead to errors. You can avoid lengthy manual input by scanning a QR code in your banking app.
The money transfer takes 1–3 days, which delays the delivery of goods to the customer, as the e-shop must wait for payment confirmation.
Instant payments
Bank transfers processed as instant payments are also initiated using a payment order or a QR code. The difference is that they are processed individually in real time, within a few seconds, which allows the e-shop to dispatch goods much faster.
Additional benefits of instant payments:
- Security: instant payments are secure and comply with current legal regulations.
- Availability: payments can be made anytime (24/7) and anywhere.
- Improved cash flow: continuous availability allows businesses to manage their financial flows more efficiently.
- Unified scheme and rules: applies to both domestic and cross-border payments across all eurozone countries.
- High transaction limit: up to €100,000, covering the needs of most business sectors.
- Innovation: instant payments enable the use of new technologies.
- Potential to replace cash: they can gradually reduce the need for cash transactions.
Initiated bank transfers
With initiated bank transfers (PISP), the payment is initiated by a third party licensed to access the customer’s bank account (under the PSD2 directive). The customer gives consent through their internet banking, but does not need to enter the payment details manually. The payment is typically processed instantly or within a few hours (depending on the bank), which helps the merchant shorten delivery times. This payment method is also secure and offers greater control over payments.
Payments via bank buttons
When paying online via payment buttons, the customer is redirected to their internet banking after clicking a pre-configured button for a specific bank (e.g. TatraPay, SporoPay, etc.). The payment details are already pre-filled and the customer simply authorizes the payment. This allows the e-shop to ship the goods almost immediately, shortening delivery times.
Bank transfers via payment buttons were, until recently, the fastest option. Some banks developed their own internal schemes for fast bank transfers, but these work only between accounts within the same bank. Both the sender and the recipient must have accounts with the same bank.
Challenges and the future
The payment infrastructure continues to improve, creating favorable conditions for the growth of instant payments. However, implementing instant payments is not without challenges. Banks need to adapt their systems to process transactions in real time, ,which requires significant investments in infrastructure and security. In 2026, further legislative updates are expected in the form of the EU PSD3 Directive and the EU PSR Regulation. The aim will be to strengthen consumer rights, combat fraud and further harmonize the payment market across the European Union.
Instant payments represent a major step forward. As their adoption grows, we can look forward to faster, safer and more convenient payments not only domestically, but also across Europe.