From October 9, EU banks and payment providers must be able to send instant payments within 10 seconds, alongside new rules on fraud checks, pricing parity, and Verification of Payee. This follows the first deadline in January 2025, which required eurozone banks to receive payments within 10 seconds. New research reveals that instant payments are on track to surpass $100 trillion by 2029, thanks largely to Europe’s rapid adoption under new regulatory reforms.
Mike argues that while this will level the playing field between banks and payment providers, those that see it simply as compliance will fall behind and those that build value-added product offerings on top of the basic requirements will be the real winners.
Laurent highlights how the regulations will transform Europe’s B2B sector but outlines the key challenges banks and PSPs have faced to ensure compliance by October 9th.
Mike Walters, CEO at Form3:
“Broadening the scope of real-time payments beyond micropayments is excellent news for end users, but presents a significant challenge for banks, payment service providers, and the systems they depend on. Verification of payees, fraud prevention, and real-time liquidity forecasting are no longer nice-to-haves; they are essential.
“Too many firms are simply treating this second deadline as a tick-boxing compliance exercise. Once every bank and PSP can transfer money within seconds, the true differentiator will be what is built on top. Product offerings such as instant refunds for e-commerce, real-time treasury management for corporates or varying access models. A cloud-native and resilient tech stack will be crucial to delivering these customer experiences and unlocking their competitive advantage.”
Laurent Descout, CEO and co-founder at Neo:
“The October deadline represents a transformative moment for Europe’s payments landscape. The EU Instant Payments Regulation will deliver major benefits, particularly for the B2B sector. By harmonising systems across Europe, businesses can execute faster, lower-cost payments, improving liquidity management and freeing up working capital.
“But the shift brings challenges. Banks and PSPs, long dependent on legacy systems, have faced, and will continue to face, significant hurdles in meeting the 10-second, 24/7 payment expectation, while maintaining reliable customer support and robust fraud and validation controls. With the €100,000 cap removed, firms also need stronger liquidity buffers, but this encourages smarter treasury planning and real-time cash management.
“While these demands may seem daunting, they create opportunity. Firms that adopt modern infrastructure and partner with innovative fintechs can turn compliance into a competitive advantage, streamlining treasury operations and fully unlocking the potential of instant payments.”
