The Hungarian Central Bank (MNB) has introduced an instant payment system that allows for bank transfers in seconds at any time of the day, according to a report.
The MNB described the immediate payment is “cash without cash,” and said it’s a helpful and competitive alternative to a cash payment.
Before the new system was implemented, Hungarians were forced to wait at least two hours before a payment went through, and could only receive funds during regular banking hours on weekdays.
Instant payments have been provided to all commercial banks in Hungary at no charge, enabling the sending of payments anytime, even on weekends and holidays.
Also, according to Hungary Today, customers will be able to use other forms of identification, such as a phone number or email address, instead of a long account number.
Pension payments in the country will still be settled at night, and wage payments will be made during daytime hours.
The new initiative was introduced in the country in 2017 in hopes of increasing electronic transactions. It was originally supposed to launch in July of last year, but was postponed.
In other European payments news, Banking Circle is now licensed to operate in Luxembourg after the Commission de Surveillance du Secteur Financier (CSSF) gave the green light. The company, which has been working in the financial industry for the past few years, is now authorized to give institutions access to real-time payments without being restricted by size or borders.
Businesses that are in payments and banking will be able to use Banking Circle to find opportunities in new markets without having to make big investments in their own infrastructure. Banking Circle already operates in the U.K. as well as Germany and Denmark, so entry into France will be a big boost for the company.
The Luxembourg Minister of Finance Pierre Gramegna said Luxembourg was an ideal choice for Banking Circle’s worldwide banking solutions.