The price of instant transfers is still not falling in France. On the contrary: some banks have implemented a pricing model that makes its price explode. Explanations.
Instant transfers to all banks and at the same price as traditional SEPA transfers: in nine months, banks will no longer have a choice. This is in fact what a new European regulationwhich entered into force on April 8 and which must be applied by January 9, 2025.
European institutions had no choice but to legislate. Nearly seven years after its launch, the market share of instant SEPA transfers still remains low. In France, for example, it represents only 6% of all transfers made, according to figures from the Banque de France dating from the first half of 2023.
We know the date when instant transfers will become free!
Delayed ignition for instant transfer
There is no need to look far for the reason for this delay: while the traditional transfer is systematically free when initiated on the web or mobile, the instant transfer remains most often paid.
French banks have, in fact, chosen to impact on users the costs of implementing the new payment method. Regardless of their interest: the instant transfer is bearer of innovations in the field of online payments, bill settlements, peer-to-peer transactions, etc. Innovations whose diffusion is slowed down by this pricing policy.
Of course, they allow their customers to use Paylib for free between friends, an interbank payment service between individuals based on instant transfers. But it is very far from covering all possible use cases.
Prices that continue to rise
Worse: the price of an instant transfer to even tendency to increase. According to our tariff statement, it went, on average, from 0.79 in January 2022 to 1.02 currently. That’s an increase of almost 30% in just over two years.
However, retail banks are more and more people playing the game. 25, out of the 128 monitored by MoneyVox (i.e. around 20%), no longer charge for instant transfers. But others have taken the opposite path, finding a tip to increase the cost of instant transfer: billing by level of amount. Clearly, the price of the transfer increases at the same time as the amount transferred.
Despite the upcoming European regulation, around thirty brands still use this method of invoicing. This is the case, in particular, of the vast majority of Caisses d’Epargnes and Banques Populaires.
Fees for instant transfers
In these banks, paying a substantial amount by instant transfer (for example, to pay for a trip, buy a car or send a deposit for a rental) can cost a small fortune. The transfer of 15,000 and more is currently charged 10 in several Banques Populaires, and up to 10.40 Caisse d’Epargne Bretagne Pays de Loire.
In its 2022 report, the CCSF Banking Rates Observatory observed the phenomenon in detail. At the time, instant transfers of less than 300 euros cost on average 0.78 euros. The price increased by 9% (0.85 euros) for transfers between 300 and 1000 euros. Beyond that, the cost soared in establishments that opted for differentiated pricing:
- 1.18 euros from 1000 to 1500 euros;
- 2.86 euros from 1500 to 5000 euros;
- 2.89 euros from 5000 to 15000 euros;
- 7.95 euros from 15,000 euros to 100,000 euros.
The price of risk
This pricing policy is not justified by the cost of TIPS access (Target Instant Payment Settlement), the settlement tool created by the European Central Bank. This price is fixed regardless of the amount: 0.002 euros per operation.
It is rather explained by the risk policies implemented by these banks. The instant transfer fraud rate, however, is not particularly worrying. In the first half of 2023, latest figures available (1), it is decreasing and comparable to that of the bank card. However, it remains 20 times higher than that of the classic transfer. Clearly, the banks in question seem make their users pay for additional risks generated by their choice of real time.
In their defense, they at least have the merit ofauthorize instant transfers of large amounts. This is far from being the case everywhere. Still to contain the risk of fraud, many banks, particularly among those which no longer charge for instant transfers, have chosen to considerably limit the amounts which can be sent by this means. At La Banque Postale, for example, it is impossible to exceed 1000 per day. A choice which also hinders the growth of instant transfers.
Transfer: these two new security measures will concern you
(1) Source: Banque de France