Thanks to new regulations about to be adopted by the European Parliament and the Council, very soon, free instant transfers should be generalized across all banks in France in 2024. Explanation.
The European Parliament and Council are preparing to adopt a new regulation in preparation which would force European banks to put instant transfers at the same price as traditional ones. As a reminder, when done online, these are practically free at all banks. Moreover, this is what partly makes them successful with customers.
However, there is this time factor which does not always favor this type of transaction. Indeed, unlike instant transfer, “instant payment”, which allows funds to be available to the beneficiary within a mere 10 seconds (between 24 hours and 48 hours when it comes to a bank based abroad), traditional transfers require a waiting period of 24 to 72 hours for the operation to be carried out, regardless of the domiciliation of the two accounts concerned. This is why instant transfers are often preferred, particularly by individuals.
The generalization of free access planned for the end of October
Five years after their launch in France, their progress remains timid due to their cost, according to The Parisian which is part of the new European regulations currently being adopted. “The regulation has not yet been formally adopted, we are awaiting the final version which should be signed by the European Parliament and the Council in December or at the very beginning of 2024”specifies Julien Lasalle, deputy director of studies at the Banque de France.
However, its application should not take place immediately, since payment service providers will have nine months to do so, after its entry into force around twenty days after validation by the European Parliament. “If the text is adopted on January 10, for example, it will come into force on January 30 and free access must be effective from October 30, 2024”specifies Julien Lasalle.
Towards a new boom for instant transfers
This measure should further encourage individuals, and perhaps other players, to give another boost to instant transfers which only represent 4% of transfers made on French soil in 2022. Knowing that among certain banks which have already adopted free instant transfers, the latter represent an average of 78% of recorded transfers. “We would like other players to seize this opportunity: administrations to provide emergency aid, or insurers to settle a claim […] It’s not an obligation for them, but it could be a differentiating factor compared to the competition”believes Julien Lasalle.