The Association of Banks of Cyprus has announced that from January 9th, interbank and cross-border transactions in Cyprus will be completed in just 10 seconds. The service will cover all banks on the island and the Single Euro Payment Area (SEPA).
“Customers will be able to receive instant payments from any bank in Cyprus or in the SEPA area in significantly less time compared to traditional bank transfers,” the association said.
The aforementioned date follows from the relevant “European Direct Payments Regulation” (“Regulation”), which has already entered into force, with two main implementation schedules for banks: January 9, 2025 and October 9, 2025.
According to this Decree, banks must modernize their electronic systems, providing them with additional security measures that will be aimed at avoiding errors, preventing fraud or detecting “suspicious transactions.”
For example, the provision “Verification of the payee” with an implementation date of October 9, 2025 states that: before clicking the button to make an instant payment, the Payer will have the legal right to know that the account number (or IBAN) that you filled out corresponds to the correct name of the Recipient who wants to send money as inside. so it is outside Cyprus. This way, mistakes or fraud attempts can be avoided. It is noted that the limit on the transfer of money through direct payments is set by each bank separately, as this is not provided for in the Regulation.
Another provision of the Regulations (with an implementation schedule dated January 9, 2025) requires banks not to charge their customers higher fees for making direct payments compared to regular existing payments.
In addition, the Regulation allows banks to offer their customers some additional services for better service. One of them is the voluntary creation of a common platform (such as a mobile application), where the client will be able to send money to any bank in Cyprus with immediate processing using a phone number or email address, rather than his IBAN. Cyprus banks are currently exploring the possibility of creating such a platform, which, if successful, could be launched by mid-2025.
Source: acb.com.cy
https://cyprusbutterfly.com.cy/news/kiprskie-banki-budut-sovershat-perevodyi
