Cyprus is entering the era of instant payments, with transactions now completed within just a few seconds. At the same time, in October, all banks operating in Cyprus and within the Single Euro Payments Area (SEPA) will begin implementing the new Verification of Payee (VoP) service.
The time needed to transfer funds from the payer’s account to the beneficiary’s account will now be reduced to just 10 seconds, regardless of the country of origin. Currently, such transfers can take one to two business days. Instant payments will apply across all SEPA zone countries, the 27 EU member states plus 10 others, including the United Kingdom and Switzerland.
According to the Association of Cyprus Banks, this change follows the EU Regulation on Instant Payments, which has already entered into force. Under the regulation, banks must upgrade their digital systems to include stronger security mechanisms that prevent mistakes, detect fraud, and identify suspicious transactions.
Verification of Payee
The Verification of Payee (VoP) provision, to be implemented by October 2025, ensures that before confirming an instant payment, the payer can verify that the account number (or IBAN) entered matches the correct name of the intended recipient, both within and outside Cyprus. This new safeguard aims to reduce errors and prevent fraud attempts.
Another key measure of the regulation, effective January 9, 2025, requires banks to charge no higher fees for instant payments than for standard bank transfers. The goal is to make payments faster, safer, and no more expensive for citizens and businesses alike.
Mobile App Platform
The regulation also allows banks to introduce optional customer convenience services. One such idea under study is a shared mobile app platform enabling users to send instant payments to any bank in Cyprus using the recipient’s phone number or email address instead of an IBAN. Cypriot banks are currently exploring the technical feasibility of this platform, which could launch sometime in 2026 if all goes as planned.
Building Trust in e-Transactions
According to the Association of Cyprus Banks, the VoP service forms part of Europe’s broader strategy to unify and secure payment systems. Its introduction is expected to boost confidence in electronic transactions and reduce the risk of fraud or misdirection. The association noted that Cypriot banks are working intensively on the necessary technical adjustments to ensure the service becomes fully operational through all SEPA payment channels by October 2025.