Starting January 9, 2025, Cyprus will revolutionize its banking system by introducing instant payments, enabling customers to complete cross-bank and cross-border transactions within just 10 seconds, any time or day. This upgrade, announced by the Association of Cyprus Banks, aims to modernize financial services across the country.
The instant payment system will function across all countries within the SEPA zone, which includes the 27 EU member states and nine additional nations, such as the UK. This advancement significantly reduces transaction times from the current one to two days, creating a more efficient financial experience for users.
To further enhance security, banks will introduce a “Verification of Payee” feature by October 2025. This feature will verify that account details match the intended recipient before finalizing a transaction, adding an extra layer of protection.
According to the regulation, banks must offer instant payment services without charging higher fees compared to standard transfers. Additionally, discussions are underway to establish a unified mobile payment platform that would allow transactions using only phone numbers or email addresses.
This initiative marks a pivotal step in modernizing Cyprus’s banking sector, bringing greater efficiency and security to financial transactions for both individuals and businesses within the SEPA zone.
Source: in-cyprus.philenews.com