Is it possible to pay and have the money in 10 seconds? The answer is yes.
Instant transfers are a payment method that offers increased speed, security, and efficiency, making them a highly attractive option for both users and businesses. While the digitization of payments is still in its early stages, instant transfers are expected to become the new norm in banking transactions due to their numerous benefits for all parties involved.
What are instant transfers?
With the rise of smartphones and e-commerce, digitalization has extended to payment methods. Customers now make online purchases at any time—day or night, weekends, and holidays—when traditional payment methods are often unavailable. On the other hand, businesses want to ensure they receive payments quickly and securely. This has led to the development of systems that meet the expectations of both parties. One such system is the SEPA Instant Credit Transfer, commonly known as instant transfers, which ensures payment receipt in record time.
Instant transfers, or A2A (account-to-account), are a type of digital bank transfer that allows money to be transferred from one account to another within a maximum of 10 seconds.
How do instant transfers work?
Introduced in 2018 and applicable across the SEPA zone (European Union and other countries like Andorra), this payment method operates 24/7, 365 days a year, with a maximum transfer limit of 15,000 euros. Additional costs may apply depending on the bank and the amount transferred.
The process begins when a customer completes a purchase and selects this payment method. The payment is initiated, and the customer is presented with a list of available banks (BBVA, Santander, CaixaBank, etc.). The customer chooses their bank and is directed to the “Log In” page. They log into their account without providing card numbers or bank details and confirm the transaction.
During the process, SMS messages with a double confirmation code are sent to the customer, who must enter the code to verify their identity. Additionally, if the customer has multiple accounts, they can select which account to use.
The money is withdrawn from the customer’s account and, as you read this, the money has already arrived in the business’s account.
Advantages of instant transfers:
- Fast: Money is in your bank account within 10 seconds.
- Convenient: Available 24/7, including weekends and holidays, allowing businesses to receive payments at any time.
- International: Usable within the SEPA zone, helping your business expand its customer base beyond national borders. All banks can offer this service.
- Efficient: A2A transfers streamline the payment journey, making it faster, more comfortable, and secure.
- Higher conversion rates: Simplifies the payment flow, reaching more people and improving customer experience.
- Low costs: Eliminates intermediaries like card networks that charge fixed fees or percentages, reducing costs.
- High security: No need to share or input financial details, and processes include double-factor authentication (SMS, biometrics) to protect users.
- Bank reconciliation: Instant transactions eliminate the need to track payment times or wait days to access funds.
Security of instant transfers
According to the Bank of Spain, nearly one million fraudulent transactions with credit or debit cards occur annually in the country. Most of these frauds happen during online purchases (70%) due to sharing unverified data.
Account-to-account payments help reduce such fraud by eliminating cards from the payment process, thus preventing fraud. They also eliminate human errors like incorrect entry of banking details or card numbers. Additionally, double authentication significantly lowers the risk of fraudulent payments, making instant transfers one of the safest methods.
If you want to implement multiple payment methods in your business, consider WANNME, the online payment platform offering solutions for managing payments. Customize the payment system based on your needs and clients, and start selling more efficiently. Contact us.
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