INSTANT PAYMENTS:
Starting 9 October 2025, all banks in the euro area will be required to enable customers to send instant payments (SEPA instant credit transfers) in euros – not only to receive them but also to initiate them. This obligation stems from European regulation and will apply across the banking market in the eurozone.
Obligations for banks from October 2025
- By 9 January 2025, banks in the euro area had to enable the mandatory receipt of instant payments.
- By 9 October 2025 at the latest, they must also enable the sending of instant payments from all euro-denominated accounts.
- Instant payments are usually processed within 10 seconds, available 24/7, with a maximum amount of EUR 100,000 (banks may set lower limits individually).
Who must comply
- This obligation applies to all banks in the euro area whose accounts support SEPA payments in euros.
- For banks in countries outside the euro area, the deadline is no later than 2027.
Significance and practical changes
- Payments in euros between banks in the euro area will become standardly instant – including cross-border transfers, not just within one country.
- Fees for instant payments may not exceed those for standard SEPA credit transfers.
- Instant payments will become mandatory for all bank clients, not only for selected accounts.
This regulation represents an important legislative change that will significantly simplify and speed up bank transfers across the eurozone.
VERIFICATION OF THE RECIPIENT’S BANK ACCOUNT
From October 2025, both Slovak and European banks are introducing the mandatory verification of the recipient for every bank transfer – for both standard SEPA and instant payments. The sending and receiving banks will instantly compare the recipient’s name (or company name) with the entered IBAN and notify the client whether the data matches the actual information held by the recipient’s bank.
Legal basis and purpose
This service is mandatory for all banks in the euro area. The aim is to increase protection against mistakes, manipulation, or fraud – especially when money is sent to the wrong account.
How it works in practice
- When entering a payment, the client must provide the name and surname (for individuals) or company name (for legal entities).
- Before authorizing the payment, the system checks whether the recipient’s name/company matches the IBAN.
- The verification result appears within a few seconds, for information purposes. If the data does not match, the client may still authorize the payment, but the risk lies with the client.
- The verification service is free of charge and also available for batch payments.
Specifics and limits
- Minor discrepancies in the entered name (e.g. order of words, diacritics, titles) will not necessarily affect the result. The decisive factor is clear identification of the recipient.
Obligation for banks
- Banks in the euro area must provide this service from October 2025 under EU regulation.
- For banks outside the euro area, the deadline is July 2027.
In practice, this will enhance client protection and payment security. Errors or fraud attempts should be much easier to detect with this system.
What does this mean for clients?
- Speed – money will arrive in the recipient’s account within seconds.
- Security – a simple check of recipient details before sending money.
- Reliability – the service runs non-stop, regardless of day or time.
💡 This change represents an important step towards more modern and secure digital banking, simplifying the lives of both businesses and individuals.
Sources used for the article:
https://www.podnikajte.sk/technologie/okamzite-platby-povinne-od-2025
