Cyprus is preparing for a significant transformation in the way people transfer money. Under a new instant payment’s initiative, which will be a collaboration between JCC payment, the Association of Cyprus banks and the Greek company Interbank Systems (DIAS), customers will eventually be able to send funds to individuals at other banks using only a mobile phone number, eliminating the need to enter an IBAN for everyday transactions. The target launch date is anticipated to be in 2027.
Association Members Involved
The new instant payment initiative is being coordinated through the Association of Cyprus Banks, with participation expected from its member banks.
Key Areas of Impact
Everyday Transactions: The new system is expected to simplify routine payments between individuals as users will be able to initiate transfers using a mobile number, reducing the need to input lengthy IBAN details.
Instant Payments: Transfers between customers of different banks are expected to be completed almost instantly, improving the overall customer experience.
Increased Digital Adoption: It also supports Cyprus' ongoing transition towards a more digitally connected financial ecosystem.
Key Concerns and Challenges
While the benefits are clear, several important issues remain under discussion before the system can be introduced.
An important key concern is the transaction limits, whereas the authorities and the participating institutions must determine the maximum amount that can be transferred using only a mobile phone number, as well as any daily transaction limits that may apply.
Effective mechanism will be required to ensure security and fraud prevention. Therefore, measures are expected to be implemented to minimize the risk of fraud, errors and malicious activity.
Finally, the system’s developing mechanisms must ensure that payments are securely directed to the intended recipients, while effectively identifying and managing incorrect or potentially fraudulent transactions.
Conclusion
The introduction of mobile number based instant payments has the potential to transform everyday banking in Cyprus. By removing the need for IBANs in routine transfers, the new system aims to deliver greater speed, convenience and accessibility for consumers. However, as the project progresses towards its planned 2027 launch, careful attention must be given to security, transaction controls and user adoption to ensure a reliable and trusted payment experience for all.
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