Instant Payments

In the European Union, all instant credit transfers in euro are based on the SEPA Instant Credit Transfer scheme (SCT Inst) of the European Payments Council (EPC). In November 2017, the EPC launched the SCT Inst scheme to offer Europe-wide, faster and easier cross-border payments in line with a single set of rules and standards.

Since November 2018, the European Central Bank (ECB) has been providing the TIPS instant payment settlement service, ensuring pan-European accessibility to instant payments. This means that, thanks to TIPS, PSPs can offer their customers instant payments with full interoperability and a pan-European reach, so that individuals and businesses can transfer money within seconds, regardless of the opening hours of PSPs. The full deployment of instant payments is a key component of the ECB’s retail payments strategy. Finally, the Governing Council of the ECB decided in July 2020 to expand the perimeter of TIPS by allowing ancillary systems providing instant payment services to participate in TIPS.

The European Commission (EC) supports a fully integrated market for instant payments within SEPA, improving the security of retail payments and boosting the autonomy of existing payment solutions. Effective from April 2024, Regulation (EU) 2024/886 amended Regulation (EU) 2012/260. The new Regulation, inter alia:

1. requires PSPs to provide instant credit transfers through all retail payment initiation channels, such as QR code scanning via smartphones, thus seeking to achieve critical mass in terms of the number of transactions and users;
2. provides for solutions to protect consumers and reduce fraud by establishing procedures to verify the name of the payee (Verification of Payee). The security and efficiency of transactions must be a top priority, as these are inextricably linked to public trust in instant payments;
3. regulates the pricing of instant payments (instant credit transfers shall not be priced more expensively than standard credit transfers), ensuring an attractive and transparent cost structure.

Through this initiative, the European Commission therefore ensures that instant payments in euro are accessible, affordable, secure and seamless. With their rapid adoption, they are expected to become “the new normal” in the euro area.

The Bank of Greece implements the framework of both the Eurosystem’s and the European Commission’s payments strategy, contributing to the diffusion of instant payments at the national level and promoting digital innovation and efficiency in the area of payments. Since February 2023, the Bank of Greece is the first Eurosystem central bank to have joined TIPS as beneficiary bank for payments to government entities. Being a European frontrunner, the Bank provides citizens with the possibility of making instant payments to the government, both domestically and across borders. In this way, it actively contributes not only to the spread of instant payments in the domestic market, but also to the adoption of modern practices by the government.

Also, in October 2024, the Bank was the first Eurosystem central bank to enable instant payments for customer transactions at its premises (at the point of interaction – POI). For the first time in Greece, the use of instant payments at the POI was introduced for customers holding an account abroad, along with the possibility to make instant payments at the POI using a QR code (for further details, see Frequently Asked Questions for Instant Payments).

The increased penetration of instant payments signals the wider adoption of a solution capable of responding to today’s challenges and meeting the growing needs of European consumers and businesses. The proliferation of instant payments will also contribute to further deepening European integration and strengthening the international role of the euro. Besides, achieving autonomy in the area of payments is an integral part of the Eurosystem’s strategy, at the heart of which are instant retail payments.

The main advantages are as follows:

• irrevocable credit transfer from one account to another in real time (less than 5 ́ ́), 24/7/365;

• immediate availability of funds to the beneficiary;

• instant confirmation that the funds have been received or instant refund;

• faster repayment of debts to the government, especially where this is vital for the payer’s uninterrupted economic activity;

• simplification and time minimisation of transactions;

• creating economies of scale for all stakeholders (consumers, businesses, government entities, PSPs, ancillary systems);

• encouraging the use of innovative payment instruments in everyday transactions;

• possibility to combine instant payments with other value-added services (e.g. Request-to-Pay);

• provision of an environmentally friendly means of payment (TIPS environmental footprint: 0.0004 g CO₂ per transaction).

With instant payments, consumers, merchants, small and medium-sized enterprises (SMEs) and government entities, including tax authorities, significantly enhance their economic efficiency and competitiveness. Instant payments present opportunities for innovation and flexibility in retail payments.

Consumers benefit from easier management of financial transactions and faster receipt of goods purchased online. In addition, instant payments provide increased flexibility, allowing consumers to complete emergency or last-minute payments and thus to avoid late fees, account overdrafts or damage to their credit scores. Finally, instant payments are a vehicle of financial inclusion for all citizens and offer more payment solutions.

Merchants and SMEs benefit from improved cash flow management, faster shipping of goods and instant receipt of the amounts due. All of the above factors lead to increased flexibility and cost savings.