The new instant-payments system is due to be rolled out by banks, credit unions and An Post from this weekend.
But it also comes with an extra layer of security.
Under EU-mandated rules, all banks and payment service providers are rolling out what is called Sepa (Single Euro Payments Area) instant payments.
This means personal and business customers will now be able to make a euro payment within 10 seconds, 24 hours a day, any day of the year.
Customers will also get confirmation within 10 seconds of making a payment that it has been received by the payee.
Sepa is a European initiative that allows for the standardisation and simplification of electronic euro-denominated payments.
The payments will be instant. But unlike those made with the likes of Revolut, to make the payments, both parties will need the other side’s Iban (international bank account number).
As part of the new instant-payment regime, new checks will be part of the system. This is being called Verification of Payee (VOP), which works by automatically checking that the name of the person or business a customer intends to pay, matches with the actual name on the recipient’s account.
The new verification system will apply when payments are being made online, in a banking app or in branch, according to the Banking and Payments Federation of Ireland (BPFI).
The new system will include additional security checks. Stock image. Photo: Getty
This new added layer of security will help customers ensure that their payments are going to the right recipient, the banking body said.
The changes reflect a broader effort across Europe to modernise the payments infrastructure and protect consumers, with the additional services being introduced as part of the EU’s Instant Payments Regulation, the banks said.
Separately, banks in Ireland are planning to bring in an instant-payments option called Zippay in the new year, where all that is required to make a payment is the other person’s mobile number if they also use Zippay.
One in five adults say they have either accidentally transferred money or been scammed
Zippay will be similar to the rapid-payment system used by digital banks Revolut and N26.
Research carried by the BPFI shows almost three-quarters of people in Ireland worry about transferring money from their bank account to the wrong person or business. This is the case, whether it’s online, on mobile or in branch.
One in five adults say they have either accidentally transferred money or been scammed into transferring money from their bank account to the wrong person or business.
The new VOP process will mean that people will have to confirm that the name of the payee matches the one on their bank account and that the Iban matches.
BPFI head of payments, Gillian Byrne said: “From next week, Sepa Instant will offer near real-time payment processing across all banks and payment service providers, enabling consumers and businesses to make and receive payments within 10 seconds, 24/7.”
She said VOP will mean checks will automatically take place on both standard and instant Sepa payments.
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