Setting up payment by phone mainly means sending transfers from your banking app as instant euro payments. The money arrives in the recipient’s account within seconds, including at weekends. Since October 2025 this has been mandatory for banks in euro-area member states, and it changes a few things for you regarding speed, cost and security.
In short: Since 9 January 2025, banks in euro-area member states must receive instant euro payments, and since 9 October 2025 they must also send them. The credit arrives within 10 seconds, 365 days a year, and the fee may not be higher than for a regular SEPA transfer. A confirmed instant payment can practically not be recalled. Last updated: November 2026.
Key points at a glance
- Since 9 October 2025, banks in euro-area member states must also send instant payments (Regulation (EU) 2024/886, Article 5a(8)).
- The money is credited within 10 seconds, around the clock and on public holidays.
- An instant payment may not cost more than a regular SEPA transfer, but it does not have to be free of charge.
- Since 9 October 2025, the bank checks the recipient’s name against the IBAN before each transfer (green, yellow or red).
- A limit that applies only to instant payments may not come with a waiting period, according to BaFin, and must be changeable at any time before an order.
- Confirmed payments are hard to recall, so care before sending matters.
What does paying by phone with instant payments mean?
For many people the smartphone is now the main access point to their account. Paying by phone can mean different things: a transfer in the banking app, card payment with the phone in a shop, or services that route payments to a phone number. Which of these functions your bank offers is stated in its app and its price and service list. This guide concentrates on the part regulated by law: instant payments in euro.
The legal basis is Regulation (EU) 2024/886 (in German). The European Consumer Centre Germany summarises the consequences for consumers on a page updated on 18 September 2025 (in German). The deadlines, the 10-second rule and the fee rule come from the text of the regulation (retrieved 2 November 2026), the notes on limits and on the recipient check from the BaFin FAQ (legal position as of 9 October 2025), and the recipient check from 9 October 2025 is also confirmed in the Bundesbank leaflet. Everything else for consumers rests on the consumer centre.
Which rules have applied to instant payments since 2025?
| Item | Rule | Since |
|---|---|---|
| Receiving | Banks in euro-area member states must receive instant payments (Art. 5a(8)) | 9 January 2025 |
| Sending | Banks must also send instant payments | 9 October 2025 |
| Speed | Credit within 10 seconds, on every calendar day around the clock (Art. 5a(1) and (4)(c)) | with the obligation |
| Fee | Not higher than for a regular SEPA transfer, but not necessarily free | 9 October 2025 |
| Recipient check | Comparison of recipient name and IBAN before approval | 9 October 2025 |
| Euro transfers within the EEA | According to the consumer centre, the recipient check applies here as well | 9 October 2025 |
| Banks in member states without the euro | Later deadlines for receiving, sending and the recipient check (Art. 5a(8), Art. 5c(9)) | 9 January 2027 (receiving), 9 July 2027 (sending and recipient check) |
According to the consumer centre, the United Kingdom and Switzerland have not committed to the recipient check. Transfers there run without a name comparison and are riskier.
How do I set up instant payments in my banking app?
Setup differs by bank, but the sequence usually follows the same pattern. Check each point in your app and in the bank’s price and service list:
- Update the banking app and check that your access uses two-factor authentication. Consumer advocates expressly recommend it.
- Look for the transfer settings in the app. They show whether a transfer is executed as an instant payment and whether you can select that.
- Set a maximum amount for instant payments that fits your daily life. A low limit caps the damage in case of fraud or typos.
- Check the fee. It may not be higher than for a regular SEPA transfer. Whether it is zero is set by your bank’s price list.
- Send a small test transfer to yourself or to someone you trust to get to know the flow with the recipient check.
- Do not store access data, TANs or passwords in notes or chats.
What do green, yellow and red mean in the recipient check?
Since 9 October 2025, the recipient name you enter is compared with the name of the account holder. According to the consumer centre, this applies to instant payments and to regular SEPA transfers, for example in online banking or at the counter. No comparison takes place for transfer slips dropped in a box. The traffic light means:
- Green: the name matches.
- Yellow: there is a minor deviation, for example a typo. The actual account holder is displayed.
- Red: there is no match.
With yellow or red you can still release the transfer after correcting or confirming again. The bank must point out the liability risks. Read these notices carefully, because a confirmed instant payment can practically no longer be stopped, according to the consumer centre. More in our guide Empfängerprüfung bei Überweisungen: Was Verification of Payee bedeutet (in German).
How safe is paying by phone?
Speed has a downside: once you release a payment, you have hardly any way to get it back. Fraudsters exploit this. The consumer centre also points out that the name check protects only partly, because spoofing or accounts opened under stolen identities are not prevented. The consumer advocates’ tips include:
- Check recipient name and IBAN even for known contacts.
- Take bank warnings seriously and do not click them away.
- Be careful with unexpected calls, emails or messages and never share TAN, PIN or passwords.
- Log in only via the bank’s official website or app and do not use links from unknown sources.
- Check account movements regularly and report anything unusual to the bank immediately.
The consumer centre also refers to a ruling of the Regional Court of Frankenthal from October 2024. According to it, a bank does not have to refund an instant payment the customer authorised themselves, even if fraud is behind it, provided the process looked correct from the outside. No general liability rule can be derived from this, but it shows how important the check before release is. Typical scams are described in Phishing-Mail von der Bank: Woran du sie erkennst (in German).
When are instant payments useful during your studies?
The benefit lies where speed matters. Assumption: on a Friday evening you must transfer a deposit or the first rent so that the lease starts on Monday. An instant payment has arrived after 10 seconds. Semester fees or charges shortly before a deadline can also be paid safely this way. For payments that are not urgent, speed offers no advantage. Pay those deliberately as a regular transfer and give yourself time to check the recipient.
If you want to keep an eye on your budget, Budget Planning for Students: A Monthly Plan in 3 Steps offers a routine into which payment dates fit well. For a general overview of accounts and payment methods see the overview for young adults (in German).
Frequently asked questions
Do I have to use instant payments?
No. The obligation falls on banks, which must offer instant payments. Whether you use them is your decision for each transfer. Regular SEPA transfers remain possible.
What does an instant payment cost?
The fee may not be higher than for a regular SEPA transfer. It does not have to be zero. The concrete price is stated in your bank’s price and service list.
Can I recall a wrong instant payment?
According to the consumer centre, a confirmed instant payment can practically no longer be stopped or recalled. Report a mistake to the bank immediately anyway.
Do instant payments also work in euro abroad?
The obligations apply to banks in euro-area member states; banks in member states without the euro have later deadlines. According to the consumer centre, the recipient check has applied to euro transfers within the EEA since 9 October 2025. For the United Kingdom and Switzerland the name comparison is missing, according to the consumer centre.
Is there a limit?
According to the BaFin FAQ, limits that apply only to instant payments may not have a waiting period, and you must be able to change them at any time before an order. If your bank also applies a limit to all transfers, both limits must be met. Ask your bank about the settings.
What to do now
- Activate two-factor authentication for your online banking.
- Set a maximum amount for instant payments in the app.
- Look up in the price list what an instant payment costs at your bank.
- Before every release, check recipient name, IBAN and the traffic light of the recipient check.
Related guides
- Geld, Konto und Kredit: Der Überblick für junge Erwachsene (in German)
- Instant Payment: Warum Überweisungen heute in Sekunden ankommen (in German)
- Empfängerprüfung bei Überweisungen: Was Verification of Payee bedeutet (in German)
- Kontaktlos bezahlen: Was bei Kartenverlust und Sperre zählt (in German)
- Organise Student Finances: Account, Reserve and Deadlines
Sources: Instant Payment ab Oktober 2025, Chancen und Risiken, European Consumer Centre Germany (updated 18 September 2025); Regulation (EU) 2024/886, EUR-Lex (in German, retrieved 2 November 2026); Questions and answers on the Instant Payments Regulation, BaFin (in German, legal position as of 9 October 2025); Instant payment leaflet, Deutsche Bundesbank (in German, undated).
Last updated: November 2026. This guide is general information, not individual advice.
