Changing the way we pay

In line with the EU Instant Payment Regulation, on October 9, all European retail and commercial banks introduced SEPA instant payments, an innovative service allowing individuals, businesses and corporations to send and receive money instantly across Europe.

This service provides customers with a faster, safer and more efficient method for transferring funds within the European Union and European Economic Area countries.

Payments are processed in real time from one bank to another, operating 24 hours a day, seven days a week, 365 days a year, including weekends and holidays.

The primary objective is to make payment transfers as simple and swift as possible for all customers.

Bank of Valletta announced the introduction of SEPA instant outward SEPA payments on October 6. Instant payment services were already available for inward payments to BOV since December 2024, and with the introduction of outward payments, BOV customers now have the full SEPA instant payments service available and can send faster and more flexible euro payments, any day, any time.

What is SEPA?

SEPA, the Single Euro Payment Area, is a payment system designed to simplify transfers within EU countries that hold euro currency accounts. It standardises and streamlines the process, making cross-border payments as straightforward as domestic transfers.

Key features of SEPA instant payments

Speed: Funds arrive in under 10 seconds. Previously, transferring money to another bank could take up to one to two days; ideal for time-sensitive payments.

Availability: The service operates 24/7, all year round. This means money can be transferred even during holidays or when banks are closed.

Coverage: SEPA Instant Payments are available in more than 36 countries participating in the scheme, extending beyond local or internal bank transfers.

Currency: Transactions are conducted solely in euro, making the service suitable for personal and non-personal customers with accounts in the SEPA zone (including all EU countries, Norway, Switzerland and the UK).

Funds arrive in under 10 seconds. Previously, transferring money could take up to one to two days

Limits: There are no set transaction limits for SEPA instant payments; however, financial transactions through BOV channels are subject to limits depending on the channel used, as identified on https://www.bov. com/bov-digital-banking-limits.

Managing transaction and daily limits

Customers can update their transaction and daily limits before or after making a SEPA instant credit transfer, within the allowable daily limit assigned through internet banking. For higher limits, customers are asked to contact BOV’s Customer Service Centre on 2131 2020 or visit any BOV branch.

Security of SEPA instant payments

SEPA Instant Payments adhere to the same security standards as traditional SEPA credit transfers. The European Central Bank monitors these payments, ensuring that banks are regulated and conform to required specifications. In 2024, the EU mandated that banks in member states must offer SEPA instant payments by October 9, 2025. This regulation also requires the introduction of the verification of payee (VOP) mechanism to help customers confirm beneficiary details before sending payments.

Verification of payee

When sending a SEPA credit transfer or instant payment, customers must enter the full beneficiary name, surname and IBAN. The system checks these details against the account holder information, providing a result notification indicating a complete match, near match, no match, or verification not possible. Customers will receive this notification and can choose to proceed or cancel the payment.

The verification process is critical to ensure that payments are not credited to the wrong beneficiary. Once a payment is authorised after the VOP check, the bank does not accept liability if it is sent to an incorrect beneficiary. In this regard it is very important that customers know their beneficiaries and check that details are correct.

How to send a SEPA instant payment

BOV Mobile

BOV internet banking

Over the counter at any BOV branch (Pprocessing may take longer)

Fees

BOV offers SEPA instant payments at the same fees as SEPA credit transfers. For full details, one can refer to the tariff of charges: https://www.bov.com/ api/v1/download/tariff-of-charges .

Abigail Gauci is digital channels regulatory analyst at Bank of Valletta.