EU Regulations Converge Bank Money with Crypto-Like Settlement

The European Union's Second Payment Services Directive (PSD2) has enabled banks to expose standardized APIs, allowing businesses to initiate payments from customers' bank accounts with their approval. This change is known as open banking.

Finnish banks, such as OP and Nordea, have implemented this technology, making it possible for businesses to ask customers to log into their bank accounts and confirm transfers without requiring card details. The payment process carries verified identity from the bank, settles on real-time rails, and stores no card credentials on the merchant side.

The EU has now mandated instant payments in the euro area through Regulation (EU) 2024/886, which requires payment providers to receive instant credit transfers since January 9, 2025, and send them since October 9, 2025. This regulation also introduces a free Verification of Payee check, matching payee names with IBANs before confirmation.

Finnish accounts are now expected to make funds available within ten seconds, including weekends and holidays, at no premium over standard transfers. This convergence of bank money with crypto-like settlement has removed the main gap between traditional banking apps and on-chain transactions.