All 27 EU member states, along with Norway, Iceland, and Liechtenstein, are affected, with the deadline for Euro transactions set for October 9, 2025, and a later deadline of July 9, 2027, for other currencies.

Starting from October 2025, banks within the EU and certain European countries will be mandated to offer real-time bank transfers that complete within ten seconds, aligning with new regulations finalized in early 2024.

These regulations, which came into force on April 4, 2025, include an 18-month transition period for banks to implement the necessary infrastructure, with all Eurozone banks required to comply by October 2025.

A key feature of the new rules is a mandatory verification process where banks must compare the IBAN and the recipient's name before completing a transfer, and they will be liable if they fail to do so, including refunds and corrections.

This verification aims to reduce errors, such as incorrect IBAN entries, by alerting customers to mismatches and ensuring funds are transferred accurately; banks will be responsible if they neglect this step.

Consumers will be able to send and receive money within ten seconds via bank or app transfers, with fees not exceeding those of standard, often free, transfers.

While services like PayPal and Klarna already offer fast transactions with added protections, many customers still face delays or high fees for instant transfers, which the new regulations seek to address.

The regulation aims to enhance the safety, speed, and security of bank transfers, reducing errors and increasing consumer protection, though it also highlights potential risks like mistaken entries and the banks' responsibilities to mitigate them.

This move towards instant transfers is part of a broader effort to modernize payments across Europe, making transactions more seamless and secure for consumers and businesses alike.

The legislation stipulates that all Eurozone banks must enable instant transfers by October 2025 at no more than the cost of standard transfers, which are typically free.