The single euro payments area (SEPA) instant credit transfer (SCT Inst) scheme will process its first transactions in November 2017, giving European payment service providers a year in which to prepare.

When in operation, this scheme will allow the transfer of money, initially up to €15,000 (£12,526), to another account in less than 10 seconds, at any time and any day of the year, including weekends and holidays. Currently such transfers can take up to one day.

Individuals, businesses, corporates and administrations will all be able to make digital payments using the service between accounts across an international area that will progressively span over 34 European countries.

The SCT Inst scheme is optional, and its success will depend on the number of payment service providers which will adhere to it. The EPC is therefore encouraging all payment service providers to participate in the SCT Inst scheme, at least as receivers, and to apply as from January 2017 to join the scheme.

The key parameters of the SCT Inst scheme are not set in stone. Payment service providers willing to increase the amount limit and transaction speed can bilaterally or multilaterally agree to do so. The maximum amount will be reviewed annually as of November 2018, to ensure that it reflects technical evolutions and market needs.

Javier Santamaría, chair of the EPC, said: ‘We have entered a new era in payments, based on speed and innovation. Digital-oriented and available 24/7/365, SCT Inst transactions will bring customers convenience and the certainty that money has been moved instantly.

‘The SCT Inst scheme will pave the way for emerging methods of payment, such as person-to-person mobile payments. Today’s publication of the scheme is only the beginning of this journey towards faster pan-European payments.’