European Parliament obliges banks to provide instant payments at no extra cost

Bank transfers currently have to be processed by the next business day, but due to weekends and holidays, it can sometimes take up to several days for money to move between accounts, particularly if it is moving between different banks.

In 2017, Europe introduced instant transfers, a payment that takes 10 seconds, around the clock and including at weekends and holidays. This was a voluntary initiative, so banks did not have to offer the service. In Belgium, it was introduced in 2019. Several banks introduced the system, but it wasn’t always free.

The proportion of instant payments in Belgium is increasing, but it is not yet the standard. It accounts for one in five of all transfers, according to figures from sector federation Febelfin.

At the European level, the situation differs from country to country. Some countries have fully embraced instant transfers, like the Netherlands, while others are slower to make the change.

The European Parliament today decided to oblige European banks to offer these instant transfers at the same cost as an ordinary payment, whether they are between Belgian bank accounts or to accounts in other countries. In Belgium, that means they will be free.

Banks will not make instant transfers the standard, however, and there will be a transition period to give banks time to implement the measure.