What is the Instant Payments Regulation?
The Instant Payments Regulation (IPR) is new EU legislation that is intended to make instant payments more accessible across Europe. Specifically, the legislation focuses on making SEPA Instant Credit Transfers faster, safer and more cost-effective.If you choose to use SEPA instant payments, your payments can be completed in seconds, improving your cash flow and creating a more seamless and transparent payment experience for everyone.
Key initiatives of IPR
The IPR introduces several initiatives that will affect the way payments are initiated and processed across the Eurozone. This may have an impact on your company and your ways of working.
Verification of Payee
Verification of Payee is a service that verifies that the payee’s name matches the IBAN, minimising the risk of misdirected payments.
Mandatory instant execution
The option of instant payment execution will be introduced across all payment channels to ensure seamless, real-time transfers. This enables customers to instantly execute time-critical payments without delays.
24/7/365 availability
With round-the-clock SEPA instant payments for both EUR and non-EUR across the Eurozone (where supported), you will be able to make and receive payments anytime anywhere. This will ease operations across time zones and help improve liquidity management.
10-second performance rule
All EUR instant payments within the EU will be processed within 10 seconds once validation is complete. This will accelerate cash flow and enhance supply chain efficiency.
Payment status notifications
When you make a payment, you will receive confirmation of completion or rejection within 10 seconds. If your payment is rejected, you can retry your instant payment right away or choose to use normal payment processing.
Payment cost alignment
SEPA instant payments will cost the same as standard SEPA credit transfers, so companies and individuals can enjoy the benefits of instant payments with no extra charge.
User Defined Transaction Limits
Payers can set custom transaction limits and daily limits with their bank or payment service provider. This enables businesses to leverage instant payments for larger financial operations.
Key dates
The IPR is being introduced in phases with different dates applying in the Eurozone and Non-Eurozone.
| Changes | Eurozone | Non-eurozone |
|---|---|---|
| User Defined Transaction Limits (Removal of interbank limit) | 9 October 2025 | |
| Banks’ obligation to receive SEPA Instant Payments | 9 January 2025 | 9 January 2027 |
| Banks’ obligation to send SEPA Instant Payments
Cost alignment Verification of Payee (VoP) available Payment status notifications User-defined transaction limits |
9 October 2025 | 9 July 2027 |
Related Content
Instant Payments Regulation
The EU's Instant Payments Regulation aims to facilitate efficient cross-border transactions. Discover how this regulation may affect your business and your banking practices here.
SEPA Credit Transfer
The Single Euro Payments Area (SEPA) enables fast and easy processing of euro payments within 32 European countries. Learn more about SEPA, its benefits, and how to process SEPA payments below.
International payments
You can transfer funds to almost all countries in the world by using the international SWIFT system.
