Cyprus is making a significant change in its banking infrastructure, as interbank and cross-border transactions will be completed in just 10 seconds from 9 January 2025, a process that currently takes one or two days. The service will also be available round-the-clock.
Instant Payments for Cyprus
Announced by the Association of Cyprus Banks earlier this week, the new settlement infrastructure will cover all banks in Cyprus and the Single Euro Payments Area (SEPA).
“Customers will be able to receive instant payments from any bank in Cyprus or the SEPA zone in significantly less time compared to traditional bank transfers,” the announcement stated. “The regulation aims to enable faster and more secure payments for individuals and businesses across the SEPA zone.”
Despite being efficient, the charges for money transfers will remain the same. The regulations even mandate that banks charge the same amount for instant transfers as existing standard transfers.
Opportunity to Add Additional Services
However, Cypriot banks can offer additional optional services, such as the facility to transfer money using the recipient’s phone number or email address instead of IBAN.
Implementing the new efficient infrastructure aligns with the European Regulation on Instant Payments, which came into force in April last year. However, Cypriot banks will implement the transfer efficiency measures next week.
These Mediterranean island banks also need to upgrade their systems to enhance security, with a deadline for this on 9 October 2025. One of these enhancements will also give payers the legal right to confirm if the account number or IBAN matches the recipient’s name.
“Banks are required to upgrade their electronic systems to include enhanced security measures aimed at preventing errors, detecting fraud, and identifying suspicious transactions,” the association added.
Under a Central Bank of Cyprus directive, Cypriot banks must enable instant payment receipt by 9 January and add an instant payment sending facility by 9 October. The country’s payment and electronic money institutions will have until 9 April 2027 to fully comply with the instant payment rules.
Cyprus is making a significant change in its banking infrastructure, as interbank and cross-border transactions will be completed in just 10 seconds from 9 January 2025, a process that currently takes one or two days. The service will also be available round-the-clock.
Instant Payments for Cyprus
Announced by the Association of Cyprus Banks earlier this week, the new settlement infrastructure will cover all banks in Cyprus and the Single Euro Payments Area (SEPA).
“Customers will be able to receive instant payments from any bank in Cyprus or the SEPA zone in significantly less time compared to traditional bank transfers,” the announcement stated. “The regulation aims to enable faster and more secure payments for individuals and businesses across the SEPA zone.”
Despite being efficient, the charges for money transfers will remain the same. The regulations even mandate that banks charge the same amount for instant transfers as existing standard transfers.
Opportunity to Add Additional Services
However, Cypriot banks can offer additional optional services, such as the facility to transfer money using the recipient’s phone number or email address instead of IBAN.
Implementing the new efficient infrastructure aligns with the European Regulation on Instant Payments, which came into force in April last year. However, Cypriot banks will implement the transfer efficiency measures next week.
These Mediterranean island banks also need to upgrade their systems to enhance security, with a deadline for this on 9 October 2025. One of these enhancements will also give payers the legal right to confirm if the account number or IBAN matches the recipient’s name.
“Banks are required to upgrade their electronic systems to include enhanced security measures aimed at preventing errors, detecting fraud, and identifying suspicious transactions,” the association added.
Under a Central Bank of Cyprus directive, Cypriot banks must enable instant payment receipt by 9 January and add an instant payment sending facility by 9 October. The country’s payment and electronic money institutions will have until 9 April 2027 to fully comply with the instant payment rules.
This post is originally published on FINANCEMAGNATES.
