28 June 2017
download the report now

Hungary presses the button on instant payments

21 December 2016  |  12089 views  |  0 Digital Arrow chart

The National Bank of Hungary is drawing up plans to introduce an instant money transfer framework for domestic payments by 2019.

The new system will build on the European Union’s revised Payment Services Directive (PSD2), as well as the recently approved Sepa standard for instant transfers (SCT).

The commitment follows a market-wide consultation conducted between the central bank and payment stakeholders in the spring.

In a statement, MNB says: "It should be considered that although the development may represent significant costs for the banks in the short run, this is the only way to make the Hungarian banking sector competitive in the long run in the market of payment services."

The Bank says the new system will be able to initiate payments up to HUF10 million, 24 hours a day, and foster a more competitive environment, creating opportunities for new electronic and mobile-based services.

Says the Bank: "With a view to ensuring the widespread usability of the service, it will be possible in the future to submit payment transactions not only in the knowledge of the account number, but also if we know only the mobile phone number, e-mail address or tax number of the payee, thus it will not be necessary to remember 16 or 24-digit account numbers."

A traditionally cash-heavy economy, Hungary has recently experienced a growing acceptance of contactless cards, with tap-and-pay payments now accounting for up to half of card-based transactions.

MNB says details related to the operation and development of the infrastructure will be made available in the beginning of 2017, with the objective of switching over to the new framework in the second half of 2019.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EPC: Pan-European instant payments set for November 2017

EPC: Pan-European instant payments set for November 2017

30 November 2016  |  8356 views  |  2 comments | 19 tweets | 31 linkedin
ICBPI partners Nets for Italian instant payments

ICBPI partners Nets for Italian instant payments

06 June 2016  |  8946 views  |  0 comments | 12 tweets | 13 linkedin
Forty banks line up in support of EBA Clearing instant payments plan

Forty banks line up in support of EBA Clearing instant payments plan

19 April 2016  |  8801 views  |  0 comments | 17 tweets | 18 linkedin
Dutch banks set 2019 target for instant payments

Dutch banks set 2019 target for instant payments

03 June 2015  |  11982 views  |  5 comments | 21 tweets | 31 linkedin
Immediate payments 'next frontier' for European integration - ECB

Immediate payments 'next frontier' for European integration - ECB

09 December 2014  |  18700 views  |  2 comments | 23 tweets | 37 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the report nowvisit vasco.com/news/PSD2-compliant-solutionsvisit www.events.sap.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
11339 views comments | 4 tweets | 5 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8874 views comments | 19 tweets | 34 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8313 views comments | 9 tweets | 6 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8289 views 0 | 4 tweets | 2 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job