Regulation (EU) 2024/886 introduces significant changes to instant transfers (SCT Inst) in Europe, aiming to modernize payments and enhance the competitiveness of pan-European solutions. It came into effect on April 8, 2024, and its implementation will be gradual over the coming years.

How does it affect Rand?

Rand is a fintech whose financial services are managed by Pecunia Cards EDE, a regulated Electronic Money Institution (EDE). The new regulation could indirectly impact us, as from April 9, 2027, EDEs will be required to offer instant transfers through the same channels as ordinary transfers.
Therefore, at Rand, the regulation will not be applicable until April 9, 2027, due to our EDE status.

Key points of the regulation:

• Mandatory implementation: Payment Service Providers (PSPs) that already offer ordinary transfers must also provide instant transfers.
• Deadlines:
  • January 9, 2025: Implementation for payment reception.
  • October 9, 2025: Implementation for issuance by banks.
  • April 9, 2027: Implementation for Payment Institutions and EDEs.
• Pricing: Fees for instant transfers cannot exceed those of ordinary transfers.
• Fraud prevention: A system must be implemented to verify the beneficiary’s name and IBAN before sending payments.
• AML-CFT verifications: Real-time verification of each payment is no longer required, but customers must be checked against sanction lists at least once per day.
• Access to Payment Systems: EDEs and Payment Institutions will have access to Payment Systems under the same conditions as Credit Institutions, with a maximum transposition deadline of April 9, 2025.

Conclusion

Although Rand is not directly responsible for implementing these changes, its financial service provider, Pecunia Cards EDE, is.

This could impact our platform’s operations and payment processing times in the future. We will continue to monitor regulatory developments to keep our users informed.