- Spanish banks are the first to adopt the EU instant cross-border payment scheme.
- This move aims to enhance cross-border payment efficiency across Europe.
What happened
On November 18, it was announced that Spanish banks have become the first in the EU to onboard to the instant cross-border payment scheme. Through the efforts of Iberpay and leveraging its services, along with relevant instant payment technologies and processing capabilities, these banks can now handle instant cross-currency payments. Santander was among the first to participate and jointly processed the initial international instant transfers back in May. This enables seamless 24/7 cross-border transactions within and outside the Single Euro Payments Area (SEPA), facilitating quicker international money transfers.
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Why it is important
This is significant as it gives Spanish banks a competitive edge in the European banking landscape. According to a report by [European Banking Authority], efficient cross-border payments can boost international trade for small and medium-sized enterprises (SMEs). For example, Spanish SMEs can now export more easily with faster payment receipts. On a broader scale, it sets a precedent for other EU countries’ banks to follow, promoting the modernization of the EU’s overall payment infrastructure. It aligns with the EU’s goal of strengthening economic integration and improving financial services for consumers, thus having a positive impact on the European economy as a whole.
