Brussels - (AFP) - The European Commission wants to oblige all banks in the European Union to offer instant payments at no extra cost compared to traditional transfers, according to a bill submitted on Wednesday.

Instant payments take less than ten seconds at any time or day of the year, and they account for just 11 percent of all euro transfers made in the European Union.

They are often subject to fees of up to 30 euros, unlike traditional transfers, which usually take a full day and may exceed 72 hours if they happen on a weekend followed or preceded by a holiday.

The bill requires payment service providers that offer to make transfers in euros to also offer instant payment.
They are also prohibited from charging fees for these instant payments that exceed those charged for traditional remittances.

"Instant remittances are quickly becoming the norm in many countries. They must become available to everyone in Europe as well, in order to remain competitive on the international stage," Commission Vice-President Valdis Dombrovskis said in a statement.

European Commissioner for Financial Services Mairead McGuinness said, "The ability to send and receive money in seconds is important, especially at a time when household bills and small and medium-sized businesses are rising, knowing that every penny counts," noting that the technology has existed since 2017.

The Commission's proposal also aims to "liberate" the money passing through the financial system, amounting to about 200 billion euros per day, for consumption or investment.

Payment service providers will also have an obligation to verify that the Iban account number and beneficiary name match, in order to warn the payer of any possible “fraud” prior to payment.

The proposal amending the existing rules will be submitted to member states and the European Parliament. Once the provision becomes effective, banks will have six to twelve months to implement it.

The European Office of Consumer Unions welcomed the proposals, stressing that the cost of instant transfers and fears of fraud were "barriers" to using this type of payment.
"It shouldn't be just a privileged service, it's time for it to be the norm," said Monique Goens, director general of the European Office of Consumer Unions.