dominate cross-border card payments, and Brussels hopes that IP, combined with reforms such as "open banking", or fintechs using a customer's bank data to offer a range of services, will boost competition."We want to extend euro instant payments internationally at a later stage," European Commission executive vice president Valdis Dombrovskis told reporters.
IP allows people to receive and make instant payments 24/7, critical if payday falls on a weekend, and for businesses to manage their cash flows by receiving funds instantly after a sale.Once in force, the proposed law, which needs approval from EU states and the European Parliament, would require euro area banks to receive euro IPs within six months, and ability to send euro IPs within a year, with banks elsewhere in the EU given 24 months to offer euro IP services.
"This will increase competition in payment services and provide consumers and merchants an additional, efficient and lower-cost choice in paying for goods and services both in store and online," said Christel Delberghe, director general of EuroCommerce, which represents the retail and wholesale sector.
Just another way of inching towards Central Bank digital currencies so that governments can have more control over their population and their populations ability to spend money.