Easier money transfers

From November, banks will launch a new service that guarantees payment by telephone contact. This is a system in which people can send or receive money without knowing their account number.

The expected innovation for payment transfers has received the green light from the Czech National Bank (CNB). Contact payment, i.e. the system where people will be able to send money without having to enter their account number, is intended to simplify transactions for people and above all reduce errors when typing in account numbers. Banks will be able to access the new system from 30 October, while payments for the public should start in November.

The role of the CNB

The contact payment system was announced by the CNB, which worked with individual financial companies to make this new instrument possible. The first banks have already publicly applied for the start-up, among them Komerční Banka and Česká spořitelna. In particular, Komerční Banka is expected to open the possibility as early as November.

However, most of the participants remain secret for now. According to information from CzechCrunch, AirBank, UniCredit Bank, mBank, ČSOB, Raiffeisenbank, PPF Banka, and Moneta are also expected to launch contact payment.

This tool should help to limit the mistakes that users sometimes make when entering their bank account number or International Bank Account Number (IBAN) incorrectly. “In the worst case, the money sent can end up in another account. In addition to limiting such errors, contact payments should further speed up the payment system,’ CNB imagines.

Radek Šalša, the spokesman of the Czech Banking Association says: “During the tests, the system worked reliably and securely. The banks are technologically ready, all parties involved plan to launch the service in the coming months”.

The tool

The register of telephone numbers will be managed by the Czech National Bank, and payment by contact will operate within clearly defined limits. In fact, anyone wishing to use this instrument will have to be logged into the system via their bank so that their telephone number can actually be matched to their bank account number, whereby the maximum amount that can be sent with an order will be five thousand crowns.

The CNB tested the project at length, stating that it is a robust system that must be checked against possible attacks. Some banks had already offered it before. For example, mBank introduced the service independently of the others, but with a smaller scope: it is limited to its mobile application, the number of payments is limited, and the permitted transfer amount is also smaller.

The CNB stated that it was inspired by similar projects abroad, such as in the United States, Latvia, or Slovakia. In addition, the method of transferring money could be made even simpler. “We will start with mobile phone numbers, but in the future, the system could also be extended to other possible contacts for matching with the account number, such as e-mail addresses,” promised Oldřich Dědek, a member of the CNB banking board and responsible for risk management. and support section for the shops running the project by CNB.

Source: https://cc.cz/

Source of image: https://primavylety.cz/

Graphic source: https://storyset.com/