The European Union is ushering in a new age of speed with the Instant Payments Regulation (IPR). Soon, Payment Service Providers (PSPs) will be mandated to offer instant credit transfers in euros - ensuring payments reach the recipient within 10 seconds, any time of day, across all EU member states.
The IPR in Brief
The Instant Payments Regulation introduces several key requirements that will reshape payment processing. First, PSPs offering credit transfers will be obligated to make instant payments available in euros. This means that transactions must be processed and delivered within a strict 10-second timeframe, operating 24/7, including weekends and public holidays.
Additionally, there is a price parity rule. Instant payments must be offered at no higher cost than traditional credit transfers, ensuring affordability and widespread adoption among consumers and businesses alike. Moneybase a member of FIMA, have been offering free SEPA payments for retail clients since July of 2024, and have annoucned their Instant Incoming SEPA Payments in May 2025.
Finally, adjustments to sanctions screening processes will be implemented. These changes are designed to allow for rapid real-time processing without compromising compliance and regulatory obligations.
Challenges and Opportunities for PSPs
For PSPs, this regulation presents both challenges and opportunities. One of the main challenges will be infrastructure modernisation. PSPs must ensure that they have robust and scalable systems capable of handling large volumes of transactions instantly and reliably.
Another critical area is fraud prevention. The rise of real-time payments naturally increases fraud risks. Therefore, advanced fraud detection strategies, including AI-driven real-time monitoring solutions, will become essential to safeguard transactions.
Equally important is the customer experience. In a landscape where instant payments become the standard, providing seamless, fast, and highly reliable services will be vital. Meeting these expectations will differentiate leading PSPs from the rest of the market.
The Role of FIMA in the Instant Payments Shift
As the voice of Malta’s financial institutions, FIMA will play a pivotal role in this transition. The association will support its members by fostering collaboration, facilitating the sharing of best practices, and engaging with regulators to ensure that Malta’s fintech sector remains agile and compliant.
Through these efforts, FIMA will help position Malta as a proactive participant in the new era of instant payments, turning regulatory requirements into a platform for growth and innovation.
