21 November 2014

European Parliament approves plans to extend Sepa migration deadline

04 February 2014  |  4985 views  |  0 euro

The European Parliament has voted in favour of proposals to extend the migration deadline for processing Sepa-compliant payment transfers by six months, to August 2014.

Under plans tabled by the Commission last month, businesses will have an extra grace period of six months to prepare their systems for accepting Sepa credit and debit transfers before legacy payment instruments are blocked.

The move was mooted in light of migration data which indicted that a substantial number of market participants and particularly SMEs would not have fully migrated to the new common standards by 1 February.

"The objective is to ensure payments are not blocked in cases where stakeholders are not ready, and thus minimise any possible risk of disruption to payments for consumers and businesses, in particular SMEs," says internal market and services commissioner Michel Barnier. "Payment service users can thus be certain that their payments will continue to be processed, and those who have not yet migrated have the time to do so. The proposal will apply with retroactive effect."

The idea has met with resistance from the Eurosystem of central banks, which has been urging the region's banks to be ready for the original Sepa migration end date of 1 February 2014.

Recent statistics released by the European Central Bank (ECB) show that Sepa migration rates picked up strongly in December, with 74% of credit transfers and 41% of direct debits in the euro area already Sepa-compliant.

But with the European parliament now endorsing the Commission's extended timetable, formal adoption by the European Council is expected to take place in the coming days.
KeywordsSEPA

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

20 January, 2014
09 January, 2014
19 December, 2013
24 October, 2013
26 June, 2013
15 May, 2013
01 May, 2013
29 April, 2013
21 March, 2013
01 February, 2013
04 December, 2012
04 October, 2012
14 May, 2012
21 December, 2011
19 September, 2011

Related company news

 

Featured job

to £90k base, double OTE
London, UK

Find your next job