The European Council has launched a new regulation to promote financial autonomy and timely transactions. It may change how consumers and businesses across the European Union and European Economic Area countries handle financial transactions.
As per this new regulation, it is now possible for anyone within the region to make instant payments in euros. This substantial move is expected to decrease the region's dependence on third-party financial institutions and infrastructures.
Benefits Of The Regulation
The new rule brings a range of benefits for both individuals and corporate entities. Check out some of these advantages below.
- It allows for transferring funds within a 10-second window at any given time, serving intra-country and inter-member state transactions.
- The possibility of innovative value-added services becomes a reality.
- All payment service providers, including banks, must facilitate the sending and receiving instant payments in euros.
- The charges associated with instant payments should not exceed those of traditional credit transfers.
The EU is not the first to adopt this trend; Brazil, India, Australia, and the U.K. markets have already seen substantial growth in instant payments. With this regulation, the EU follows suit with highly advanced technology for instant payments.
Consumer Preference For Faster Payment Options
In the first quarter of 2022, Societe Generale reported that only 11% of transactions within the eurozone were instantaneous. However, there is an evident shift in consumer preference for quicker payment options. A survey conducted by PYMNTS and Ingo Payments revealed that 72% of consumers would opt for instant payments if given the choice.
The European Council's regulation on instant payments in euros is more than just a financial reform; it is a step forward in catering to the increasing demand for immediacy in financial transactions. It eases user transactions and paves the way for innovation in the payment services sector.
