Europe’s financial sector is entering a new phasethis week as the EU’s Instant Payments Regulation reaches its finalimplementation deadline. From October 9, banks and payment service providers(PSPs) across the bloc must be able to process and send instant euro paymentsaround the clock and for virtually any amount.Join stablecoin builders in London at the fmls25From Ten Seconds to 24/7 ObligationsThe journey began over a decade ago with the SEPA Instant Credit Transfer scheme, which allowed euro transfers in tenseconds but capped them at €100,000. While it proved the concept of instantpayments, the limit left corporations constrained—especially when handlingpayroll, taxes, or supplier payments.That restriction is now history. Under the newregulation, banks and PSPs must offer real-time euro transfers up to aneye-watering theoretical limit of €999,999,999.99. The European Parliament andCouncil’s aim is clear: make instant payments the standard, not the exception,across the bloc.The regulation’s rollout has been split into twophases. The first, effective January 9, 2025, required all EU and EEA PSPs toreceive instant payments. The second, due this week, mandates that they mustalso send them.Related: 2 Days to 10 Seconds: Cyprus to Make Online Transfers InstantCompliance isn’t just about speed. The law demandsparity in pricing with traditional transfers, strict anti-fraud protocols, andthe introduction of Verification of Payee systems. These services alertusers if the recipient’s name doesn’t match the account, a safeguard againstauthorized push payment fraud.Yet, industry insiders warn that the timing couldn’tbe tighter. The European Payments Council only published its directory of VoPpartners in May, leaving many vendors scrambling to test and integrate thetechnology.The Liquidity TightropeHowever, the removal of the €100k ceiling introduces anew risk—liquidity management. Banks must now operate on a continuous cycle,ensuring funds are available even at midnight on weekends. According to the regulator, instant payments removethe window that banks once had to screen transactions. Fraud teams now havefive seconds to verify a payee before a payment clears.Under the regulation, PSPs must also conduct dailysanctions checks to ensure that none of their clients are on restricted lists, amove designed to maintain security without slowing down transfers.One of the institutions already complying with thedirectives is the Bank of Cyprus. It announced today that it will fully enableinstant euro transfers, allowing customers to send and receive funds acrossEurope in just 10 seconds, any time, day or night.Banks were required to overhaul their internal systems tomeet the regulation’s technical and security standards. These upgrades includestronger fraud prevention, real-time error detection, and verification toolsdesigned to protect customers.This article was written by Jared Kirui at www.financemagnates.com.