The Council of the European Union has adopted new rules on the use of the euro for instant payments to empower European fintech companies and challenge the dominance of US giants Visa and MasterCard.。

The rules aim to improve the payment environment, allowing customers to transfer money within 10 seconds, even outside traditional business hours and between EU member states.。

For cross-border transactions

By enabling instant euro payments the EU aims to facilitate cross-border payments and enhance the competitiveness of European payment companies relative to established companies。The new rules mark a major departure from existing payment systems, where transactions using traditional cards and deposits typically take several business days.。

One aspect of this EU initiative is to enhance strategic autonomy in the European economic and financial sector。By reducing its dependence on third-country financial institutions and infrastructure, the EU seeks to strengthen its position in the global payments market.。

In addition to this, the move reflects efforts to level the playing field and promote fair competition among payment service providers, including fintech companies that use customer data to provide services.。

Adoption of Euro Instant Payments Rule Expected to Boost Growth in Europe Fintech These companies are increasingly challenging the traditional banking model。

Fintech companies can offer consumers and businesses a convenient alternative to traditional banking services through faster and more efficient payment mechanisms, the regulator said。

Empowering European Fintech Companies

With the popularity of instant payments, businesses and consumers are exploring new opportunities for financial products and services tailored to their needs.。In addition, the interoperability of instant payment systems in EU member states will pave the way for cross-border commerce and collaboration, driving economic growth and prosperity.。

Recently, the European Parliament approved regulations aimed at strengthening credit transfers across the EU.。The rules are expected to improve safety and efficiency for consumers and businesses, Finance Magnates reports.。

New regulations require financial institutions and payment service providers to step up fraud detection and prevention measures, putting consumer safety first。Instant credit transfers require funds to reach the recipient within ten seconds, marking a significant leap in transaction efficiency。

Payment service providers must inform payers of the availability of funds in real time, enabling consumers to immediately understand and control their transactions。To combat fraudulent activity, payment service providers must provide timely authentication services at no additional cost。