The Single Euro Payments Area (SEPA) aims to harmonise bank payment systems for Euro currency credit transfers, direct debits and debit card payments, speeding the flow of money across the euro zone.
Most EU countries now trade with a single currency - the Euro - yet still handle retail payments on a national basis. Their payment structures have evolved separately, with different legal frameworks, schemes and infrastructures.
One system for Europe
SEPA, the Single Euro Payments Area, will change all that with a new cross border legal framework and system for credit transfers, card payments and direct debits. Besides introducing new EU-wide regulations, SEPA will encourage competition between payment service providers, to help the EU to compete more effectively in the worldwide marketplace.
Key Implications:
- Standardisation of Euro Payments; strengthening banking trust and reliability on a Pan-European basis
- High number of competitors and fewer niches through standardisation
- Payment providers and banks are likely to be biggest losers in SEPA standardisation
- UK organisations paying into Euro zone countries can still benefit
- Reduction of cash money and increase of electronic money
- Increasing surveillance of money flow
Barron McCann takes the lead
Barron McCann intends to be at the forefront of those service providers, particularly in the area of web-based secure products. The complexity of establishing a Single Euro Payments Area for each EU country's legal and financial infrastructure means the process is currently running behind schedule. However, Barron McCann is working closely with legislators and policy makers to ensure that we will be ready with effective SEPA-compliant products when the initiative goes live.
For more information, please contact:
Phone: 01462 482 333
White Paper - Understanding the drivers for efficient and fully-inclusive Payment Systems
