EBA harmonises reporting for euro payments across the European Union

The European Banking Authority (EBA) has published a decision harmonising how national competent authorities report under the SEPA regulation, marking a key step in strengthening oversight of euro payments across the European Union.

The decision complements the European Commission’s implementing regulation, which requires all payment service providers to report data on charges for credit transfers and payment accounts, as well as the share of transactions rejected due to EU sanctions.

It specifically streamlines the second stage of the reporting process, governing the flow of information from national authorities to both the EBA and the European Commission.

By introducing a single reporting channel through the EBA, the decision reduces the administrative burden on national authorities while ensuring that both institutions receive consistent and high-quality data.

This improvement supports the commission’s efforts to monitor whether consumers are benefiting from access to instant credit transfers across the EU and whether such transfers remain no more expensive than standard ones.

Under the new framework, national authorities will report data exclusively to the EBA, which will then make it available to the European Commission.

The decision also clarifies that where authorities already hold some of the required data, they must ensure its accuracy and completeness without requesting it again from payment service providers.

In addition, the decision amends the Annex to the EBA’s EUCLID Decision to incorporate the new reporting requirement.

The EBA said that the decision takes immediate effect, reinforcing the regulatory infrastructure underpinning Europe’s integrated payments system.

The legal basis for the move lies in article 15(3) of the SEPA Regulation, which requires payment service providers to report annually on charges for credit transfers, instant credit transfers and payment accounts, as well as the share of rejected transactions due to targeted financial restrictive measures.

Article 15(4) further requires competent authorities to provide both the commission and the EBA with this information, alongside data on the volume and value of instant euro transfers conducted over the preceding calendar year.

Moreover, article 53 of the EBA regulation establishes the responsibilities of the EBA executive director, including implementing the annual work programme and adopting administrative instructions and notices.

It should be noted that Cyprus has already aligned with major elements of the Single Euro Payments Area reforms introduced last year, embedding faster and more secure transactions within its banking system.

From October 9, 2025, all banks operating in Cyprus and across the EU began processing payments around the clock, seven days a week, ensuring that funds are transferred within seconds.

The change stems from the EU’s Instant Payments Regulation adopted in April 2024, which builds on the SEPA framework developed by the European Payments Council.

The reform aimed to eliminate delays in crediting payments, ensuring that individuals and businesses, particularly small and medium-sized enterprises, gain immediate access to their funds.

It also introduces stricter safeguards designed to strengthen trust in digital transactions.

While banks have been required to receive instant payments since January 2025, the obligation to send them became mandatory from October 9, 2025.

Under the new rules, all SEPA transfers, whether domestic or cross-border, must reach the recipient’s account within ten seconds, regardless of the time of day.

Although there is no EU-wide cap on transfer amounts, banks are permitted to set their own transaction limits within a common regulatory framework.

At the same time, Cyprus moved ahead with preparations to implement the Verification of Payee service during the same month last year, adding another layer of protection to electronic payments.

The Association of Cyprus Banks explained at the time that the system forms part of a broader European strategy to unify and secure payments, requiring providers to verify that the beneficiary’s name matches the IBAN before executing a transfer.

This mechanism allows both individuals and businesses to confirm with greater certainty that funds are being sent to the intended recipient.

The European Payments Council played a central role in developing the system and providing guidance to banks, businesses and the public.