Limit, pricing, security: what’s changing for instant payments in 2025

Available since 2017, the instant payment enables money transfers to be executed in under 10 seconds, 24 hours a day, 7 days a week, across the entire SEPA area*. Long offered as an optional paid service, instant payments are set to become a cornerstone of financial services in 2025 — for both consumers and businesses alike.

In this article, we explore the fundamentals of instant payments, their latest developments, and the best practices to turn them into a strategic payment management tool.

Instant payments were first introduced in 2017 by the European Payment Council. But it is the European Regulation of 13 March 2024 that is set to accelerate their adoption significantly, with several key changes:

• From 9 January 2025, banks and financial institutions must enable the reception of instant payments.
• By 9 October 2025 at the latest, they will also be required to support the sending of instant payments, at the same price as standard transfers — making the service free of charge for most retail customers.
• By the same deadline, financial institutions must implement a Verification of Payee (VoP) service, confirming that the IBAN provided matches the beneficiary’s identity. This is a major step forward in the fight against payment fraud, such as falsified bank details or identity theft.

These measures aim to democratise access to instant payments and establish them as a universal standard across Europe — much like traditional SEPA transfers today.

Another major development from 5 October 2025: the regulatory limit of €100,000 per instant payment will be removed.Banks will still be able to set their own limits for security reasons.

In practice, these limits vary by institution:

• Some banks cap instant payments at just a few hundred euros.
• Others allow significantly higher amounts to be transferred.

These restrictions are designed to mitigate fraud risk, but customers can request a higher limit to suit their specific needs — balancing flexibility with security.

Whether reimbursing a friend, paying a contractor, or securing a commercial transaction, instant payments rely on four fundamental principles that make them a fast and reliable payment solution.

SEPA instant payments are available 24/7 through a bank’s online platform or mobile app. They can also be automated via business tools such as CRMs or treasury management systems (TMS).

Where a traditional SEPA transfer can take between 24 and 72 hours, an instant payment credits the recipient’s account in less than 10 seconds.

Once the payment order is issued and the account balance verified, the funds are credited irrevocably to the recipient’s account. Unlike a cheque, which could bounce, an instant payment guarantees that the funds will be received. In the event of an error, the funds cannot usually be recovered unless the recipient agrees to return them.

Making an instant payment is both simple and secure. The user journey is similar to that of a standard transfer:

1. Choose the sending account (not all accounts support classic or instant payments).
2. Select the recipient (IBAN and name required).
3. Enter the payment amount.
4. Select the “Instant payment” option.
5. Review the details and confirm using strong customer authentication.

The transfer is executed immediately, and the sender receives a confirmation notification.

The speed, simplicity, and irrevocability of instant payments make them an attractive target for fraudsters. To ensure secure transactions, several best practices are essential:

• Always verify the beneficiary’s identity before confirming a payment.The rollout of VoP in October 2025 will significantly strengthen this security layer.
• Be cautious of unusual requests claiming to be from your bank — whether via email, SMS, or phone.
• Never share your online banking credentials.
• Enable strong authentication in your banking app and online portal.
• Regularly monitor transactions to detect any suspicious activity.

While instant payments are already transforming the consumer experience, their true potential lies in B2B and B2B2C applications — particularly when integrated via Banking-as-a-Service (BaaS) platforms.

Thanks to instant payment APIs, businesses can embed this functionality directly into their own products and services, bypassing traditional banking interfaces.

For businesses, instant payments offer clear and strategic advantages:

• Enhanced customer experience with fast, traceable payments.
• Improved cash flow through reduced settlement times.
• Secure payment flows thanks to real-time authentication and verification.
• High performance and reliability at scale, regardless of payment volume, thanks to BaaS infrastructure.

This is particularly valuable in sectors where large payment volumes and speed are daily priorities:

• Marketplaces and service platforms: instantly pay vendors or providers as soon as a transaction is completed.
• Insurance: compensate clients in real time following a claim — improving satisfaction and loyalty.
• Mobility and on-demand services: pay drivers, couriers, or freelancers immediately.
• E-commerce: offer instant refunds for returns, building consumer trust.
• Tourism: accelerate and secure supplier and partner payments to strengthen relationships.
• iGaming: pay out player winnings in seconds.

Now mainstream thanks to regulation, strengthened by VoP, and easily automated through BaaS platforms, instant payments are redefining the standards of payment speed and reliability — particularly for one-off transactions.
For recurring payments, however, SEPA Direct Debit (SDD) remains a secure, cost-effective, and easy-to-schedule option.

*SEPA zone: 27 EU countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden), 4 EFTA countries (Iceland, Liechtenstein, Norway, Switzerland), the United Kingdom, Vatican City, Andorra, Monaco, and San Marino.