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European citizens and companies are expected to have many more financial institutions offering such services available as early as 2024 Instant transfers to their services and most importantly they won’t pay anymore an instant transfer compared to a traditional transfer. The Council and the European Parliament have indeed reached a very important agreement Digitization of payment transactions which, according to the two institutions, “will contribute to reducing the excessive dependence of infrastructure and financial institutions on third countries”.
Transfer money in 10 seconds
The basic feature of the Instant bank transfercompared to normal, that is speed: in less than ten seconds Money flows from one account to another. However, with a standard bank transfer they spend at least 24 hours, often even 48, between the execution of the bank transfer and the crediting of the money. Even more time passes if there is a weekend in between.
However, in the period between the traditional transfer by the payer and the money reaching the recipient, the money “disappears” and becomes part of what economists call a “transfer.”floating capital“.
Flowing capital is money “in motion” between one account and another and it is estimated that i 200 billion euros. The money is already no longer available in one account, but not yet in the other account, which is damaging the economy and represents an administrative burden for the banks.
However, by transferring money in 10 seconds The float is reset and with it the problems associated with it.
What the EU has decided
In Europe we talk about it Promote instant transfers Already in 2021. A year ago, the European Commission adopted a legislative proposal to favor instant transfers at the expense of traditional transfers, and this summer the Economic and Monetary Commission of the European Parliament approved the draft Remittance reform and electronic payments.
Now there is also the ok European Council and that’s why we’re heading towardsfinal approval of the new Community rules on electronic payments: all banking institutions and financial companies that offer the standard bank transfer service must also offer it immediate, without you having to pay more.
Therefore, when this law comes into force, whoever If you have a bank account or an app that allows you to make a transfer, you can make a transfer immediately. In most cases with no or minimal cost.
Therefore, for execution times below 10 seconds, instantaneous transfer becomes onecredible alternative to other payment methods, for example those that rely on it to the large international payment circles.
European money, European banks, European data
We don’t yet know whether European citizens will prefer instant transfers Credit cards. However, we know the logic behind the European Union’s decisions: to make this possible for its citizens Avoid transiting through the United States when they make a purchase.
Today, the most commonly used international payment methods are all American: Visa, Mastercard, Maestro, Capital One, American Express. These lines are therefore also used for payments between European citizens when an Italian goes to a restaurant in Italy If you pay by credit card, you are almost certainly using an American service.
That’s how it stands pay for this service and above all it is trust Data of this transaction to an American company. Although all of these companies have local branches in various EU countries and some even have data processing servers in the EU, it is now clear that Europe wants to emancipate itself from this as completely as possible Dependence on foreign countries when it comes to managing sensitive data.
For both Protect privacy as best as possible of its citizens and to prevent their dependence from becoming a burden (also political) in the event of diplomatic and geopolitical problems. One of the first Sanctions sponsored by the United States Putin’s RussiaAfter the attack on Ukraine, it was precisely the impossibility of using American payment circles for transactions with foreign companies.