Instant transfer: what is it?
Instant credit transfers, technically known as Instant SEPA Credit Transfers (ISCT), are an evolution of the traditional SEPA credit transfer. They allow funds to be transferred from one account to another in less than 10 seconds, 24/7. Unlike a traditional credit transfer, which still requires 24 to 48 business hours (excluding weekends and public holidays), the amount is immediately and irrevocably credited to the beneficiary’s bank account.
Technically, instant transfers rely on European infrastructures such as TIPS (Target Instant Payment Settlement) or EBA Clearing’s RT1. Banks and payment service providers (PSPs) must be connected to these networks to execute payment orders in real time.
Instant transfer, now free
Since January 9, 2025, European Regulation (IPR 2024/886) requires that the fees charged for instant transfers must not be higher than those for traditional transfers. In other words, they are now free for both individuals and businesses. Until now, some banking institutions charged between €0.50 and €1.50 per transaction, which hampered adoption.
The text also provides that all banks and PSPs in the eurozone must make the service accessible both for sending and receiving by October 9, 2025. More than 95% of establishments are already connected, guaranteeing almost complete interoperability.
The official limit is set at €100,000 per instant transfer, opening up new uses in B2B and for settling large invoices. In practice, some banks still limit this limit (often around €15,000), but the trend is toward relaxation.
With the price of instant transfers no longer an obstacle, their use is exploding in all payment situations.
Please note : this system only applies to SEPA transfers made, not SWIFT transfers.
Security, guarantees and protective measures
Instant transfers benefit from the same level of security as a classic SEPA transfer :
Each transaction is subject to strong authentication (SCA), in accordance with the DSP2 directive, most often in your personal banking space (bank mobile application)- Banks and PSPs are implementing real-time anti-fraud systems and devices to detect suspicious banking transactions
This payment method is irrevocable: once validated, it is impossible to cancel an instant transfer. This rule strengthens the trust of beneficiaries, particularly for merchants and businesses, who can be sure that the payment has been properly executed.
But this irrevocability also has its downside. In a context where online fraud remains very active, it can increase the interest of scammers: in the event of a scam, funds are transferred instantly, with no possibility of recall. This is why attacks such as IBAN fraud or identity theft scams can find fertile ground with ISCT.
To address this risk, a new system has been introduced: Verification of Payee (VoP). This mechanism, already proven in the United Kingdom, automatically verifies the match between the beneficiary’s name and the IBAN provided before a transfer is executed. The objective is twofold: to prevent data entry errors and limit fraudulent attempts, by providing an additional layer of transparency and trust.
What concrete benefits for businesses ?
The widespread use of instant transfers is already transforming the way businesses operate, beyond simply providing convenience for individuals.
- Improved cash flow : funds are available immediately, reducing collection times and improving liquidity; an asset in high-turnover sectors
- Shortened payment cycle : an order/invoice paid by instant transfer triggers faster processing, shipping and delivery of the service, increasing responsiveness
- Low cost of instant transfer : Unlike credit card payments, ISCT does not generate proportional commissions. Its operational cost can be up to 6 times lower, making it a very competitive option for recurring collections or large amounts.
- Enhanced customer experience : the user receives immediate payment confirmation, without uncertainty or delay. This comfort strongly influences trust, particularly in sensitive e-commerce or B2B uses.
Players like CentralPay natively integrate instant transfers into their solutions, offering businesses immediate collections and optimized management of their daily flows, both for their one-off and recurring transactions.
What limits remain?
Nine months after the widespread adoption, some challenges remain on the merchant side; not for adoption, but for optimal use of instant transfers.
- Accounting reconciliation : Although the money arrives instantly, finance teams still need to perform reconciliation work to match each payment received to its order/invoice. Solutions like CentralPay fully automate this manual process.
- Technical integration : To make the experience seamless, companies can interface via APIs and/or rely on Open Banking services. This work is necessary to build fully digital payment journeys.
These limitations do not hinder the use of this payment method, but highlight the importance of mature tools to take full advantage of instant transfers.
What are the prospects for payment in the future ?
In 2023, 14% of transfers in the eurozone were instant SEPA transfers¹. The following year, their daily volume jumped by 72%². This growth is expected to accelerate further with the imposed generalization.
But its role is no longer limited to replacing the “traditional” transfer: it serves as the foundation for a new generation of “account-to-account” (A2A) payments, without intermediaries. Combined with Open Banking, instant transfers are now being deployed in e-commerce processes via Pay by Bank (payment initiation), where the creditor no longer needs to enter their IBAN and validates their purchase in a few seconds. Everything suggests that, before long,
instant online transfers will become an e-commerce payment standard.
The Wero initiative, led by the European Payments Initiative (EPI), illustrates this transformation. Its goal: to create a European digital wallet enabling online, in-store, and peer-to-peer payments using instant transfers. A sovereign, commission-free alternative to international networks. A decisive asset for conversion and cash flow.
For businesses and merchants, the message is clear: adopting instant transfers now means capturing the uses of tomorrow, improving cash flow and positioning yourself in the rapidly changing European payment ecosystem.
Do you want to get paid by instant transfer ?
With CentralPay, you can combine instant collections, automated accounting, and unified management of your financial flows. Discover how our transfer payment solution can strengthen your cash flow and streamline your processes.
¹ European Central Bank, Payments statistics: second half of 2023 (2024) ² Treasury Management, SEPA Instant Credit Transfers (2025)
