THE AFRICAN COURIER. Reporting Africa and its Diaspora! The African Courier is an international magazine published in Germany to report on Africa and the Diaspora African experience. The first issue of the bimonthly magazine appeared on the newsstands on 15 February 1998. The African Courier is a communication forum for European-African political, economic and cultural exchanges, and a voice for Africa in Europe.
On 9 January 2025, a significant change was implemented in the European Union’s banking system: all banks are now required to accept real-time euro transfers. This mandate, established by an EU regulation, ensures that customers can send and receive funds instantly, 24/7, with transactions completed within ten seconds.
Prior to this regulation, while standard SEPA (Single Euro Payments Area) transfers typically took one business day, real-time transfers were often available at an additional cost, sometimes up to €1.50 per transaction. With the new rules, these instant transfers must be offered at no extra charge, aligning their cost with that of standard transfers.
This development is expected to enhance the efficiency of financial transactions across the EU, benefiting both consumers and businesses by providing faster access to funds and improving cash flow management, analysts say.
However, experts caution that the introduction of real-time payments may present certain challenges. David Riechmann, a financial expert at the Consumer Center NRW in Germany, notes that the immediacy of these transactions could be exploited by cyber criminals for phishing attacks. Additionally, the irreversible nature of real-time transfers means that once funds are sent, they cannot be retrieved, increasing the risk of fraud.
To mitigate these risks, banks are implementing enhanced security measures. They are now required to verify that the recipient’s name matches the provided IBAN before processing a transfer. If there is a mismatch, customers will receive a warning prior to completing the transaction. Furthermore, customers can set maximum limits for real-time transfers to minimize potential losses in case of fraud.
The real-time transfer requirement will also extend to non-euro EU countries, including Bulgaria, Denmark and Poland, beginning 9 July 2027.
Looking ahead, by 9 October 2025, banks will also be obliged to send real-time euro transfers, as a standard practice, further enhancing the speed and efficiency of financial transactions within the EU.
In summary, the EU’s new regulation on real-time payments marks a significant advancement in the bloc’s financial infrastructure, offering faster and more efficient transactions. While it brings numerous benefits, it also necessitates heightened vigilance and robust security measures to protect consumers from potential risks associated with immediate fund transfers.
Adira Kallo
