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Hungarian banks start testing instant payments system

07/01/2019

Several Hungarian commercial banks have begun testing a domestic instant payment system expected to go live on July 2019.

As Reuters reports, under the new system, which has been in development since 2017, domestic bank transfers worth up to HUF 10 million (USD 35,306) will be settled within five seconds 24/7.

The central bank had proposed the shift to the new infrastructure with the aim to increase the use of electronic and mobile payments, providing an alternative to the widespread use of cash transactions.

The system will enable bank transfers to mobile phone numbers, providing an easier alternative to the current 24-digit bank account numbers, GIRO said.

The banks active in Hungary include domestic OTP Bank, Austrian Erste Group Bank and Raiffeisen, Belgian KBC Group, as well as Italian UniCredit and Intesa SanPaolo.

Author: Kate Nelson