The full application of direct payments in Cyprus on October 9, the Cyprus Bank Association announced.
As stated in a bank's announcement, bank customers will be able to pay and receive direct payments from any Bank of Cyprus or the SEPA zone, in much less time, than the usual banking payments.
Specifically, the time of handling a payment from the payer's account to the beneficiary's account is limited to only 10 seconds (regardless of the country's shipping country), while the corresponding time today could be one to two business days. Immediate payments will be implemented in all SEPA zone countries, which are the 27 EU Member States, plus 10 other countries outside the EU, including the United Kingdom and Switzerland.
The date of application results from the relevant "European Regulation on Immediate Payments", which has already come into force, with two basic timetables for banks: January 9, 2025, and 9 October 2025 (for acceptance and sending direct payments, respectively).
Under the regulation, banks must upgrade their electronic systems with more security valves aimed at avoiding errors, prevention of fraud, or even detecting "suspects".
For example, the provision for a "Verification of Payee", with a timetable for application in October 2025, states that: Before pressing the button, to complete an immediate payment, the payer will be able to know that the account number (or IVAN) which has completed, corresponds to the right name of the right Cyprus. In this way, mistakes will be avoided, or attempted fraud.
It is noted that the limit for transferring money through direct payments is defined by each bank separately, since it is not provided by the Regulation.
With at least the existing trading cost
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Another provision of the Rules of Procedure, with a timetable for implementation on January 9, 2025, requires banks not to charge higher fees to their customers to perform immediate payments in relation to the usual, existing payments (remittances).
Additional options for greater convenience
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In addition, the regulation enables banks to offer some additional services to their customers to better serve them, but without being mandatory. One of them is the voluntary creation of a common platform (type of mobile app), where the customer will be able to send money to any bank within Cyprus, by direct handling, using the beneficiary's phone number (or even email address) instead of the IBAN. At this stage, banks are in the study stage to create this platform in Cyprus, which, if all goes well, is expected to operate in 2026.
Faster with maximum security
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It is noted that the regulation aims to faster and more insured payments for citizens and businesses, from all countries in the SEPA zone, and with charges, which will not exceed the existing, for ordinary banking payments.
