Cyprus launches Instant payment system for European transactions

Starting January 9, 2025, Cyprus will introduce instant payments, revolutionizing its banking system. This upgrade will allow customers to complete cross-bank and cross-border transactions within 10 seconds, any time of the day. The system will function across all SEPA countries, including the 27 EU member states and others like the UK, replacing the current one- to two-day transfer times.

To ensure security, banks will roll out a “Verification of Payee” feature by October 2025, confirming account details before payments are processed. Additionally, fees for instant payments cannot exceed those for standard transfers. Discussions are underway to create a shared mobile payment platform that would allow transactions using phone numbers or email addresses.

This initiative, led by the Association of Cyprus Banks, aims to enhance efficiency, security, and convenience for individuals and businesses alike, marking a significant step forward in Cyprus’s banking sector.