Starting January 9, 2025, most Spanish banks will eliminate fees for immediate money transfers, following a new European directive.
The European regulation mandating immediate payments is set to revolutionize the banking landscape, compelling institutions to abolish fees associated with this service. As of 2025, nearly all banking customers will enjoy the privilege of sending money instantly without incurring any charges. In a significant move, most Spanish banks will eliminate these fees starting January 9, coinciding with the enforcement of a pivotal European directive.
Last February, the European Parliament ratified a regulation that obliges all banks across the continent to provide instant money transfers to their clientele at a cost that is either equivalent to or lower than that of traditional transfers. The overarching aim of this initiative is to democratize access to such transactions and catalyze the growth of digital finance. Notably, in Spain, where standard transfers are already devoid of fees at most institutions, the transition to free instant transfers is poised to occur seamlessly in the new year.
Instant transfers, a financial innovation introduced in 2017, facilitate the transfer of funds between bank accounts in under ten seconds. This service operates around the clock, every day of the week, with a maximum transfer limit set at €100,000. It accommodates a variety of transactions, including those between individuals, individuals and businesses, and inter-company transfers.
In Spain, the banking sector has already embraced free instant transfers through the Bizum platform, a creation of the banks themselves that has gained traction for interpersonal payments in recent years. However, Bizum does come with its limitations; while it can be utilized for online shopping at select retailers, its primary function remains the facilitation of low-value payments among friends and family. For more formal transactions requiring higher amounts or proof of payment, traditional bank transfers are typically necessary. Furthermore, Bizum is tethered to a single bank account, necessitating users with multiple accounts to revert to conventional transfer methods via banking websites and mobile applications. This scenario often arises when individuals attempt to transfer funds between their own accounts, as the so-called ‘autobizum’ is not an option.
Currently, the majority of standard transfers, which traditionally take between 24 to 48 hours to reach the intended recipient, are free of charge. In contrast, instant transfers have generally incurred fees ranging from €1 to €12. According to data from the Helpmycash portal, various banks impose different charges: Sabadell at €0.95 per transaction, BBVA at €1.25, Abanca at €1.50, Imagin at €2, Kutxabank at €3, CaixaBank at €3.95, Openbank at €4 (for non-salary accounts), Unicaja at €5, Santander at €6, and Bankinter at €12. Conversely, banks such as Revolut, EVO, Mediolanum, and Pichincha have already adopted a model of offering these transfers free of charge.
By 2025, it is anticipated that the vast majority of banks will provide this service at no cost, aligning with their existing offerings of traditional transfers without fees. One of the primary objectives of this regulatory measure is to stimulate online payments. Spain stands out as one of the European nations where such payments have proliferated, with instant transfers accounting for 54% of operations in 2023, a figure that continues to rise, as reported by Iberpay, the entity overseeing the national payment system.
However, the prevalence of instant transfers is not mirrored across the rest of Europe, where they remain less common and often come with higher costs. The European Commission has highlighted that one in three banks within the EU does not offer instant transfers to their customers, leaving approximately 70 million accounts without this option. When instant transfers are available, the associated costs frequently exceed those of standard transfers, creating a disincentive for customers to opt for this expedited service.
Moreover, the European Union is acutely aware of the substantial sums of money that remain temporarily inaccessible, thereby hindering investment opportunities and the operational liquidity of businesses. The European Commission estimates that a staggering €200 billion is immobilized within transfer systems daily due to the delays inherent in traditional transfer methods. Through the implementation of this regulation, the EU aims to expedite payments to businesses, particularly small and medium-sized enterprises (SMEs). The European authorities project that the release of these funds, facilitated by instant transfers, could yield an annual profit of €1.8 billion.
