All bank transfers will be free and instant, like Bizum

Sending money through Bizum is a matter of seconds. The amount sent reaches its recipient instantly and without entailing an extra cost for the user.

If this is technologically possible, it was difficult to accept that many banking entities take up to two or three business days to complete a money transfer, especially if it is sent between different banks. The same goes for commissions. Once it has been demonstrated that the process can be free, it is difficult for the user to accept being charged with this extra cost.

However, this situation has its days numbered. The European Parliament has approved (599 votes in favor, 7 against and 35 abstentions) an update of the community payment regulations.

As soon as the new standard is ratified by the Council of the European Union, it will come into force. From there, banking entities will have one year to adapt to the new legislation and offer users instant transfers, which will have to be completed in a period of less than 10 seconds.

This will be the case regardless of the day and time they occur. It will not matter if the client orders the transfer on a holiday or in the middle of the morning. The shipment will have to be instantaneous and the customer will have to be informed if the money has been received without major problems or if any incident has occurred.

In the same way, these instant money movements will also have to be free or, at least, have the same commission as that applied by the bank in question to traditional transfers.

The regulations will also force banks to have a user identity verification system. This will ensure privacy and anti-fraud measures will be implemented in these instant shipments.

Some banking entities, such as Revolut, already offer their clients free and instant transfers. Soon, this will be the standard in all entities.

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