Switzerland and the EU’s New Instant Payments Regime

Firstly, all payment service providers (PSPs) offering instant payments in euro must be able to receive and send them around the clock (24/7/365). Fees must not be higher than for other credit transfers.

Secondly, PSPs must check – free of charge for consumers and micro-enterprises – whether the IBAN matches the beneficiary’s name, specified by the paying party. They must also check the master data against the latest sanctions lists on a daily basis.

Finally, PSPs will have to disclose all payment transaction fees to the competent authorities on an annual basis in order to ensure transparency.

Following the publication of the final text of the Regulation by the EU Commission on November 23, 2024, PSPs in euro countries will have six months from the entry into force of the Regulation to receive instant payments. The same deadline applies to price harmonization, daily screening, and reporting. Within one year, they must be able to send instant payments and ensure the verification of the beneficiary.

With the exception of sanctions screening, the Regulation grants PSPs outside the euro area longer deadlines: 30 months for receiving instant payments and price harmonization, including reporting, and 36 months for sending instant payments and IBAN/name verification.

Wealth management and private banks in Switzerland are particularly interested in participating in the euro instant payments market. The SECB Swiss Euro Clearing Bank, in its primary role as the payments bank for the Swiss financial center, is currently exploring the possibility of offering euro instant payments services to and from Switzerland by the end of 2024. This shows that the new EU regulation is also relevant for non-euro SEPA countries and can have a profound impact on the financial landscape – with all its potential benefits and challenges.

Yoann Foumany
Head Customer Services, SECB