The European Union’s Instant Payment Regulation (2024/886 of 13 March 2024) is changing the way financial transactions are done across Europe. It requires payment service providers (PSPs) to enable instant money transfers, aiming to make payments faster, safer, and more accessible for everyone. This article explains the regulation, the new responsibilities it creates for PSPs, and how ComplyPay’s solutions make compliance easy.

Key Points of the Instant Payment Regulation

The Instant Payment Regulation is a major step forward in modernising Europe’s payment systems. It requires PSPs to offer SEPA Instant Credit Transfers (SCT Inst), which allow money to be transferred between accounts in seconds, even on weekends and holidays.

The goal is to make instant payments as simple and affordable as regular bank transfers. By doing so, the regulation encourages innovation in the financial sector, supports economic growth, and improves customer satisfaction. However, PSPs need to make significant updates to their systems to meet these requirements.

What PSPs need to do

PSPs must ensure compliance with the IPR by incorporating the following essential features into their services:

1. Offer Instant Payments: PSPs that handle euro transfers must provide instant payment options for their customers.

2. Fair pricing: PSPs cannot charge more for instant payments than for regular transfers, ensuring affordability for users.

3. Fraud protection: PSPs are required to have real-time fraud detection systems in place to protect users while maintaining the speed of transactions.

4. IBAN verification: PSPs must provide a way to verify that an IBAN matches the intended recipient to prevent mistakes and fraud.

Meeting these requirements is not just about following the law. It’s also a way for PSPs to stay competitive in a market where customers expect fast and reliable payment services.

How ComplyPay makes compliance easy

For PSPs facing compliance challenges, ComplyPay offers a straightforward path to compliance. Using ComplyPay’s advanced technology, PSPs can meet regulatory demands with minimal hassle.

1. Instant Payment solutions: ComplyPay provides a ready-to-use platform that makes it easy for PSPs to implement SEPA Instant Credit Transfers without needing extensive in-house development.

2. Affordable compliance: ComplyPay’s tools follow the pricing rules, allowing PSPs to offer instant payments without raising costs for themselves or their customers.

3. Real-time fraud detection: ComplyPay uses advanced tools to monitor and prevent fraud in real time, helping PSPs meet security requirements while protecting their customers.

With ComplyPay’s support, PSPs can not only comply with the regulation but also improve their service offerings and stay ahead in the evolving payments industry.

The Instant Payment Regulation is a big step forward for Europe’s financial systems, focusing on speed, security, and accessibility. While it presents challenges, solutions like ComplyPay make compliance straightforward and efficient.

Contact us today to learn more about ComplyPay and PSPs partnerships.