More express transfers are being made in Estonia

Private clients and companies in Estonia made an average of 926 express transfers* per day through TARGET2 in the fourth quarter of 2014, with a total value of 44.4 million euros. The average number of transfers per day is 2.8 times higher than a year earlier, but the total value has fallen by one tenth. This indicates that express transfers are being used more for paying smaller sums. In Estonia most of the express transfers are cross-border, as much as 80%, and on average 189 domestic payments were made each day through TARGET2 in the fourth quarter. As more than one million domestic payments are made each day in Estonia, including card payments, TARGET2 express transfers are only being used to a small extent.

Interbank transfers in Estonia became slower from February 2014 when Estonia joined SEPA, the Single European Payment Area, but it is still possible to make faster transfers if necessary. TARGET2 allows all bank clients to make high-speed transfers that reach the recipient within around 15 minutes between 08.00 and 18.00 on business days all across Europe. Depending on the bank and whether the payment is made in a bank office or over the internet, the price of an express transfer can vary in Estonia from €1.50 to €50. A general picture of the price lists of the banks can be found in Estonian athttp://www.minuraha.ee/maksed/?popup=teenustasudevordlustabel&parent=16430.

* TARGET2 express transfers are based on the service operated by Eesti Pank, which is available to all the banks operating in Estonia.

See a graph here

Source: Bank of Estonia

Author: Teet Puusepp, Eesti Pank Payment and Settlement Systems Department

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