EU Approves Instant Euro Payments To Compete With Visa, Mastercard

The groundbreaking regulation enables the swift transfer of funds denominated in euros, allowing transactions to be completed within a mere 10 seconds, irrespective of the time or whether it involves transfers within a single country or across EU member states.

Traditionally, transaction processes through conventional card payments and banking deposits have been slow, often extending over several days. This new initiative seeks to expedite these processes significantly. Furthermore, the regulation includes transactions involving countries outside the eurozone, ensuring wider applicability of these fast payment services.

The introduction of these rules marks a strategic advancement for the European economic and financial sectors, aiming to diminish the over-dependence on financial institutions and infrastructural services from outside the EU, as articulated by the EU Council.

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This move is part of broader efforts by the EU to reform a payment market that traditional banking systems and the giants Visa and Mastercard have long monopolised. With the rise of fintech companies offering innovative payment solutions through direct access to customer bank account data, there’s a growing challenge to the status quo, prompting these significant regulatory changes.

The Council’s decision clearly reflects the EU’s dedication to enhancing its strategic independence in the financial domain, reducing reliance on external entities, and fostering a more competitive and self-reliant European payments landscape.

This initiative also addresses the ongoing issue of high inflation by promoting a more efficient and cost-effective transaction process for consumers and businesses alike across the European Union.