Instant bank transfers have seen strong growth in Spain over the years: between 2020 and 2021, their usage increased by 117%, and in 2023, a record 1.011 billion of these transactions occurred. Just a year later, in 2024, that record was broken, with 1.187 billion instant transfers made.

A similar increase has occurred across the rest of Europe, so it was only a matter of time before the European Union (EU) took action to make this kind of transfer more accessible. In March 2024, the EU passed Regulation 2024/886, setting rules for instant transfers in both Spain and the rest of the European Economic Area (EEA). With this regulation in place, it’s likely that instant transfers will continue to increase in Spain.

In fact, a growing number of businesses in Spain have started using payment providers that offer instant transfers; this allows the businesses to provide instant refunds, potentially boosting customer satisfaction. If you’re thinking about integrating this service into your business, we’ll explain how it works and what benefits it provides.

What’s in this article?

• What are instant transfers?
  
• How do instant transfers work?
  
• Regulation of instant transfers in Spain
  
• Advantages of instant transfers
  
• FAQs about instant transfers in Spain
  

What are instant transfers?

Instant bank transfers are money transfers that reach the recipient’s account within seconds of being initiated. Regular transfers, on the other hand, typically take one or two days to process. Instant transfers are processed in real time within the Single Euro Payments Area (SEPA) zone and can be made any time, day or night, all year round.

How do instant transfers work?

Instant transfers work almost the same way as traditional transfers, no matter the payment system used. In Spain, the most common mobile payment system for making this kind of transfer is Bizum, which, according to the Bank of Spain, handles 95% of instant transfers. This platform and banks both operate in the same way:

• The recipient’s IBAN is entered: A business or individual enters the International Bank Account Number (IBAN) of the recipient’s account (or for Bizum, all that’s needed is the phone number linked to the bank account).
  
• The request is sent to the bank’s system: The system, in turn, conducts two automatic verification steps in a matter of seconds:
  
  • It confirms the identities of both the sender and the recipient.
    
  • It checks that the payer’s account has enough funds.
    
• The transaction is processed: The clearing, settlement, and receipt delivery occur instantly.
  
• Account balances are updated: Both the sender and the recipient immediately see their account balances updated with the transfer amount.
  

Regulation of instant transfers in Spain

In February 2024, the final version of Regulation 2024/886 was approved, setting rules for instant transfers in the EEA. Soon after, on March 13, the regulation was officially published, including specific rules and requirements that took effect on January 9, 2025. The key regulations include:

• Banks can’t charge more for instant transfers than for regular transfers: This means if a bank provides standard transfers at no cost, it can’t charge fees for instant transfers. And in the event that fees do apply, the bank must inform the customer before an account is opened.
  
• Instant transfers must be completed within 10 seconds, no matter the time or day: The person sending the instant transfer must also receive a receipt within that same 10-second window.
  
• Payment service providers must comply with a set of requirements, including:
  
  • Fraud detection: They must have a system in place that can detect fraud. Regulation 2024/886 strengthens certain requirements under the Spanish anti-fraud law, which is designed to prevent illegal use of the financial system.
    
  • Personal information verification: Payment service providers are required to prevent transfers from being sent to the wrong recipients. To ensure this, they must use an IBAN verification system that confirms the recipient’s name. On platforms such as Bizum, for instance, the sender can view the recipient’s first name and the initials of their last name before approving the transfer.
    
  • Transfer limits: Payment service providers must give users the option to set a custom maximum limit for their instant transfers, helping them stay below their chosen transfer amount.
    

Advantages of instant transfers

Instant transfers have clear advantages over traditional payment methods, especially in terms of security and removing the usual wait times for receiving payments. In March 2024, Spain was at the forefront of instant transfer usage in Europe, accounting for 53% of all bank transfers, while the European average was just 15%. Here are a few reasons for this payment method’s success in Spain:

Advantages for individuals

• Instant transfers are accessible: They’re available 24/7, all year round, making them perfect for everyday payments between individuals or for small online purchases.
  
• They’re useful in an emergency: Since they’re processed immediately, they’re particularly handy for sending money in urgent situations. In Spain, where 13.6% of the population experiences payment delays, this speed is a major benefit.
  

Advantages for businesses

• Instant transfers reduce payment delays: This is particularly helpful when it comes to supplier payments in Spain. Businesses in the country take an average of 15.65 days to pay—according to the most recent data, that is 3.54 days longer than the European average.
  
• They improve cash flow management: This is especially true for smaller businesses. The ability to transfer funds instantly helps with cash flow planning and timely fulfillment of tax duties such as quarterly value-added tax (VAT) filings.
  
• They reduce operating costs: Transferring money instantly cuts down on operational costs by removing manual tasks such as checking account deposits. This frees up time and resources in the finance department.
  
• They can improve customer satisfaction: Platforms such as Stripe Payments allow you to issue instant returns to customers, easily manage refunds, and accept various payment methods customers will appreciate, such as credit and debit cards, Bizum, digital wallets, and even one-click payments.
  

But while there are many advantages, there is one downside to consider: unlike regular transfers, which can sometimes be stopped if the bank is contacted quickly, instant transfers can’t be reversed—making it especially important to double-check the details before confirming the transfer.

FAQs about instant transfers in Spain

Which banks in Spain support instant transfers?

As of January 9, 2025, European regulations require all banks that provide traditional transfers to also support instant transfers. In Spain, this covers banks such as BBVA and Santander, as well as dedicated instant transfer tools such as Bizum (created by a group of 20 banks) and MoneyBeam (developed by N26).

What’s the maximum amount that can be sent in an instant transfer?

The maximum limit for instant transfers depends on the bank. Even though the European Payments Council (EPC) lifted the cap on instant transfers, many instant payment providers in Spain still apply their own limits. For instance, Bizum permits transfers up to €1,000 per transaction, while banks such as Santander and CaixaBank allow up to €15,000.

Can an instant transfer be canceled?

No—once an instant transfer order is issued, it cannot be reversed, so it’s very important to check the details before confirming the transfer. Many providers let you verify that the IBAN matches the beneficiary’s name, greatly lowering the risk of errors.

How much does an instant transfer cost?

If a provider offers traditional transfers at no cost, then instant transfers must also be free. Some banks might set specific conditions to provide instant transfers for free, but in any case, they must clearly state any fees before the customer opens an account.

How long does an instant transfer take?

An instant transfer should arrive in the recipient’s account in less than 10 seconds, even if they use a different bank.

Can instant transfers be made internationally from Spain?

Yes, cross-border instant transfers in euros can be made between SEPA countries using the SEPA Instant Credit Transfer (SCT Inst) system. If the recipient doesn’t have a bank account in a SEPA country, money can still be sent instantly using a digital wallet.