Dutch can transfer money from the first half of 2019 within 5 seconds

Nov

15

2018

Dutch banks will start with the try-out for Instant Payments in January, with which mutual transfers must be completed within a maximum of five seconds. The gradual, broad introduction will follow in the first half of 2019.

Instant Payments should allow transfers between banks almost immediately and at any time, including at night and during holidays. The Dutch Payments Association gives the example of buying second-hand items, with both parties immediately seeing after the sale that the money has been transferred. The association also thinks of delivering at the door, whereby Instant Payments can serve as an alternative to mobile debit.

The banks are currently preparing the introduction of Instant Payments for the test environment and in January the first live transactions have to go through the production systems. Later in the first half of 2019, the banks will start scaling up the introduction for their customers.

Instant Payments

They do not have to do anything to use Instant Payments; they note that amounts are transferred almost immediately to the beneficiary’s account when they are transferred. “The infrastructure for Instant Payments is calculated to quickly process one billion direct transfers per year,” Piet Mallekoote, director of the Dutch Payments Association, announced on Wednesday. He makes the comparison with PIN transactions, of which 3.8 billion took place in 2017.

The Payments Association coordinates the cooperation of payment service providers, including banks. ING, Rabobank, ABN Amro, Knab, SNS, ASN Bank and RegioBank are currently participating in the introduction of Instant Payments. The Dutch parties are committed to the European standard that has been agreed, even though the transfer of books will lower the bar within ten seconds. A maximum amount of fifteen thousand euros per transfer also applies at European level. For transfer within the Netherlands with the fast method is no maximum.

In the first instance, it concerns single transfers via the mobile app or internet banking. Instant Payments is therefore separate from payment platforms such as iDEAL. In order to be able to offer the latter payment method on a site, companies must conclude an agreement. “But banks can choose to combine Instant Payments and iDEAL”, according to the Dutch Payments Association.

Banks can choose whether they show notifications with direct transfers via their app and whether they offer other services on the basis of the standard. They could also choose to charge a rate for Instant Payments. “There is a lot to do with the new infrastructure, but now it’s up to the banks what they want to do with it,” Mallekoote said. In the long term, for example, batch payments, such as salary transfers, must also be able to take place via Instant Payments.

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