New instant transfer service includes fraud protection as EU regulation takes effect
Irish banks and credit unions are launching instant payment services across the eurozone, enabling money transfers anywhere in Europe within 10 seconds, available around the clock.
The SEPA Instant Payments system, along with Verification of Payee (VOP) fraud protection, becomes available in Ireland this month as part of the EU’s Instant Payments Regulation. By January, all banks and payment service providers across the eurozone must offer the service.
Gillian Byrne, head of payments at the Banking and Payments Federation Ireland, described the launch as “a significant step forward in providing consumers and businesses with fast and secure payment services.” Both personal and business customers will receive payment confirmation within 10 seconds at any time of day.
A key security feature is the VOP system, which automatically verifies that the payee name matches the actual account holder’s name. When mismatches occur, customers receive immediate alerts and can choose to correct the information, retry, or cancel the transaction. This protection applies to both instant and standard SEPA payments.
The new system addresses significant consumer concerns. BPFI research found that 74% of Irish consumers worry about transferring money incorrectly, while one in five adults have either sent money by mistake or fallen victim to fraud.
Banks are urging customers to verify that payee names in their systems match actual account names and update any discrepancies immediately. BPFI has launched a public awareness campaign and information website to prepare customers for the changes.