MEPs debate new rules to ensure transferred funds arrive immediately into the bank accounts of retail customers and businesses across the EU. Opening statements by Mairead MCGUINNESS, European Commissioner for Financial Services and by Michiel HOOGEVEEN (ECR, NL), Rapporteur. This transcription is a result of an automatic process. Please check against delivery.

statement

Strasbourg

debate

plenary session

McGUINNESS, Mairead (EPP, IE)

fight against organised crime, corruption and money laundering (T)

economic and monetary union package (T)

HOOGEVEEN, Michiel (ECR, NL)

Instant payments in euro: opening statements by Mairead MCGUINNESS, European Commissioner for Financial Services and by Michiel HOOGEVEEN (ECR, NL), Rapporteur

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, Thank you, Chair. Dear Commissioner, Dear colleagues. Let me first thank the Commission for its excellent initiative. That was the basis for the work done by Parliament and Council. With the agreement on instant payments, we deliver on an opportunity to do something that people and businesses truly care about. They will be able to transfer money within 10 seconds at any time of the day and including outside business hours, not only within the same country but also to another EU member state.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, This is not about some abstract plumbing of the financial system or super technical capital requirements for banks or insurance companies or fine tuning of the European statistical system. Instead, this is something very concrete and something that Europeans truly care about in their daily lives. Ask yourself, Have you ever wondered why a package from an online retailer reaches you faster than a payment from a friend from another EU member state? Why can we send emails all over the world in a split second? But this year there is a payment from Belgium to Latvia still take 2 to 3 business days.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, Our payment transaction system is based on a system from the 1980s with the instant payments regulation, we finally enter the 21st century. I would like to highlight four important aspects. First, convenience 10 seconds for each transaction. Some EU countries, such as the Netherlands or Spain, already have their own national instant payment scheme. But this will now become a reality across Europe. Good for citizens and companies who can send and receive their money faster.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, Second, security the Iban name Check, some banks are already using. In my country. The Netherlands is now introduced across Europe, making transactions more secure than ever. Third, we make our markets less dependent on foreign companies for both online and car payments. And fourth, openness and innovation. FinTechs will also gain access to the payments infrastructure. But even market vendors will be able, in theory, to set up their own QR system for receiving instant payments.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, No more high costs to rent a payments terminal in order to be connected to the payments infrastructure. It is high time that instant payments become a reality for European citizens as they will enjoy smoother payments options, for European businesses, as they will face lower costs and for European payment services as they will become more and more competitive.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, I enthusiastically welcome the trialogue agreement, which clearly shows the ambition that Europe needs. Ambition on scope, for example, by the inclusion of payments institutions and electronic money institutions as insisted by the Parliament. This should enhance innovation. Ambition on fees, most notably by requiring that charges for instant payments may not be higher than charges for traditional non instant payments. Such affordability is key to realising the maximum benefits for consumers.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL), Rapporteur, And last but not least, ambition on the entry of force of this regulation. The Parliament negotiating team has successfully negotiated its implementation deadlines in the very near future. Let me conclude by thanking the Commission, Commissioner McGuinness, for an excellent proposal and the Spanish Presidency and my colleagues, shadow rapporteurs for the constructive collaboration during our negotiations. Thank you so much.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, Thank you, President. Good evening. Colleagues, I almost was going to say let me second the speech of the rapporteur and maybe maybe start with a big thank you to Michel. His event, because you worked tirelessly and effectively with the shadows to get this piece of legislation done in a very timely manner. The matter of instant payments should not be new, but it's not the norm and won't be unless this legislation is in place. And instant payments are a very practical issue for all of us, businesses and citizens.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, And the idea is very simple. Allowing all of us to send and receive money in less than 10 seconds and instant payments have a really powerful impact. Consumers can easily avoid penalties for late payments and manage their household budgets more effectively. Businesses get better cash flow, which is really important for SMEs. Retailers get more options around payments, allowing them to offer better services to their customers, including instant refunds. NGOs and charities can receive contributions more quickly, especially when funds are urgently needed in times of crisis.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, In the public sector, too, there's advantages in terms of cash flow and collecting fiscal revenues. Now, we are not trailblazing in this area. This regulation will allow the EU catch up with international markets like Brazil, India, Australia and the UK, where instant payments are growing fast. The technology to provide instant payments is well established. And frankly, uptake has been too low in the EU. But your work in this chamber and the colleagues who specifically worked on the file, your work will make a difference. It will change matters for the better.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, And I repeat, the fact that you worked very effectively and in a timely way, and we would say that this is rare indeed on files in the European system. In Irish we would say that seldom is wonderful. The outcome of the negotiations struck a very good balance. Parliament helped make sure that the regulation is ambitious and your work has also been welcomed by both payments, service users and providers.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, You led important changes, allowing payment institutions and electronic money institutions to become eligible to participate in designated payment systems, improving consumer protection against fraud with your changes to the Payment Verification Service, where providers will have to enable users to check whether the name and the Iban match this service will now be made available not just for instant payments, but for all non instant payments.

SOUNDBITE (English), Mairead MCGUINNESS, European Commissioner for Financial Services, And this verification service will be provided to all users free of charge. I really do look forward to the vote on Wednesday. Colleagues, there are some files which test all our patience and reserves, but happily this is not one of them. Thank you.