Paying at a certain number of banks, the instant transfer could become free everywhere, as requested by the European Commission.
If, in general, a bank transfer is carried out between 24 and 48 hours after its registration by the bank, the instant transfer is carried out in a handful of seconds and allows the beneficiary an immediate credit on his account, and this, 24 hours a day, 7 days a week. However, this type of transfer is still chargeable at certain banks, even though Brussels recommends that it be free for countries like France. This desire could soon become reality.
The massive adoption of instant transfers is not for now
Last October, the European Commission adopted a legislative proposal aimed at “ make instant euro payments accessible to all individuals and businesses with a bank account in the EU or in an EEA country “. In other words, Brussels wants to give a boost to instant transfers in Europe.
The finding is quite striking. Very practical and available since the end of 2017, instant transfers accounted for only 11% of all transfers in euros made in the European Union at the start of 2022. Nearly 9 out of 10 transfers are still processed today like classic, so-called “slow” transfers.
In France, neobanks are doing what is necessary to democratize instant transfers by making them free. Traditional establishments and banks offer the option, but not all of them for free, which slows down its adoption. Our colleagues from Next INpact also relay interesting data taken from a study by Galitt PayObserver (June 2022) on the issue. Indeed, 70% of French consumers surveyed are not yet ready to pay to take advantage of the speed of instant transfers.
In France, instant transfers are not yet free everywhere
The European Commission’s recommendation targets France in particular. Abroad, some countries have already adopted instant transfers for a long time (2008 for the United Kingdom, and 2012 for Denmark, Poland and Sweden). In France, professionals talk about the difficult task of absorbing the cost, both technical and economic, of switching to instant transfers. La Banque Postale estimates it at several tens of millions of euros, in particular because of the adaptation and the real-time account management system.
The instantaneous transfer in fact presupposes certain computer capacities in order to be able to manage any peak in activity. The traditional system, on the other hand, manages transfers in batches, at night.
Security is also a major issue. Check the transfer of a sum sent in the SEPA zone to non-European countries (and check that it is not intended to launder money or finance terrorism, what are called “MLB/FT checks “) in less than 10 seconds, as would require an instant transfer, is for example impossible, according to the director of payments of La Banque Postale. Certain checks previously carried out ex-ante (before the effectiveness of the transfer) are thus carried out ex-post for instant transfers today.
Instant transfers to La Banque Postale have been free since 1er January 2022. In 2019, they were charged 70 euro cents to individuals, and 80 to businesses and professionals. It is also free at Boursorama, Crédit Mutuel Arkéa and Crédit Agricole. On the side of Société Générale, there is still a charge (80 cents from the first euro) if you are the issuer of the transfer. BNP Paribas (1 euro per transfer) and the Caisse d’Épargne (1 euro if the amount issued is greater than 300 euros) still charge for issuing the instant transfer.
The Commission asks that payment services not charge instant payments in euros at a price which may be higher than that of traditional transfers. We are therefore tending here towards free, since traditional transfers are already free in France. It now remains for the recalcitrant banks to comply.
Sources: European Commission, Next INpact
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