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As recently covered in the media, Cyprus has entered a new phase of digital banking with the rollout of instant payments, a system that allows funds to move between accounts within seconds โ any time, any day.
What Changed
- From 9 January 2025, the Central Bank of Cyprus and local banks began processing instant payments, covering both private customers and selected government agencies. This modernization brings Cyprus in line with EU standards for faster, more secure transactions.
- With a deadline of 9 October 2025, implementation of the introduction of Verification of Payee, which checks if an IBAN matches the beneficiaryโs name, reducing fraud and errors.
Key Benefits
- 24/7 transfers: Money moves instantly, without waiting for business hours.
- Improved cash flow: Businesses gain immediate access to funds.
- Faster settlement: Payments are reconciled in real time.
- Room for innovation: Banks and fintechs can build new services on top of instant transfers.
Regulation & Security
The EUโs Instant Payments Regulation sets two deadlines:
- 9 January 2025: Banks must support sending and receiving instant payments.
- 9 October 2025: Introduction of Verification of Payee, which checks if an IBAN matches the beneficiaryโs name, reducing fraud and errors.
Banks must also apply stronger security measures and cannot charge higher fees for instant transfers compared to standard ones.
Whatโs Next
By late 2025, Cyprus banks may roll out additional services, such as sending money using a phone number or email instead of an IBAN.
Conclusion
Instant payments represent a major upgrade for Cyprusโs financial system, giving consumers and businesses faster, safer, and more convenient ways to move money while opening the door to new innovations in digital banking.
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