EU: Direct payments and remittances in euros through banks 24 hours a day

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The Commission has approved the relevant proposal to lift restrictions for citizens and businesses across the Union and in EEA countries

The Commission today approved a legislative proposal to make direct payments in euros available to all citizens and businesses with a bank account in the EU and EEA countries.

Her proposal Commission aims to remove barriers to direct payments, making them accessible, secure and seamless across the EU.

Instant payments allow money to be transferred at any time of any day, within ten seconds. This is much faster compared to traditional credit transfers, which are received by payment service providers only during business hours and reach the payee’s account only the next business day, which can take up to three calendar days. According to the Commission, at the beginning of 2022, only 11% of all euro credit transfers in the EU were direct.

The Commission emphasizes that the direct payments significantly increase speed and convenience for consumers, for example when paying bills or receiving emergency transport (eg in the event of a medical emergency). In addition, they help significantly improve cash flow and save costs for businesses, especially SMEs, including retailers. They free up money currently locked in transit in the financial system, (nearly €200 billion locked up every day), which could be used for consumption or investment.

Among other things, the Commission wants to make direct payments in euro affordable, by requiring payment service providers to ensure that the price charged for direct payments in euro does not exceed the price charged for traditional, non-direct credit transfers in euro .

The Vice-President of the Commission for an Economy that Works for People, Valdis Dombrovskis said: “Direct payments are fast becoming the norm in many countries. They should be accessible to everyone and in Europe, so that we can remain globally competitive and make the most of the innovation opportunities offered by the digital age.”

Financial Services Commissioner Maired McGuinness said: “The move from ‘next day’ to ‘ten second’ transfers is seismic and comparable to the move from post to email. However, today almost nine out of ten euro credit transfers are still processed as traditional ‘slow’ transfers. There is no reason why many citizens and businesses in the EU cannot send and receive money instantly, the technology to provide instant payments has been in place since 2017. This ability to send and receive money in seconds is particularly important at a time when bills for households and SMEs are rising and every cent counts. This initiative will directly benefit EU citizens and businesses.”

RES-EMP

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