14 February 2016

Finally, Sepa migration deadline day arrives

01 August 2014  |  8110 views  |  2 SEPA Textured background

After a 15 year slog, the Single euro payments area (Sepa) hits a major milestone today with the full implementation for credit transfers and direct debits in the euro area.

1 August marks the (delayed) migration deadline for processing Sepa-compliant payment transfers, meaning that more than 500 million citizens and 20 million businesses can use a single bank account for all euro credit transfers and direct debits in Europe. Countries outside the euro area have until 31 October 2016 to migrate.

Authorities hope that Sepa will give a significant economic boost to Europe, enabling businesses to expand into new markets without extra payment costs. Every month more than two billion payments will now flow across the euro area in new standardised formats in what the European Central Bank calls the one of the largest financial integration projects in the world.

Yves Mersch, executive board member, ECB, says: "The successful completion of Sepa further accelerates Europe's financial integration. It removes barriers to credit transfers and direct debits which will no longer impede businesses or consumers."

However, the Sepa story is far from over - the ECB has already turned its attentions to the harmonisation of the largest electronic retail payment instrument: cards. Meanwhile, a newly-convened Euro Retail Payments Board (ERPB) has set up two working groups to explore the role of mobile and 'innovative' payments methods.

Comments: (2)

Tim Brew
Tim Brew - YourCMO - London | 01 August, 2014, 21:23 Good news for SEPA, but such a shame it has taken 15 years to get to where we are today. Sadly the rest of the world has moved on, real time payments and mobile payments are taking over now. The EU really has to take more proactive action to move forward. 15 years to achieve this amount of innovation in the modern world is quite simple not good enough. It will be interesting to see the business outcomes and real benefits achieved from SEPA as it develops. How much benefit can be derived from cross border? Will consumers notice the difference? Early indications all point to the large corporations being the biggest benefactors. Banks have taken a big cost on board to deliver this. Let's hope SEPA can now deliver a proper real time architecture and catch up with the market leaders. The problem will, as always, be to get everyone on the same page on how to do it.
3 thumb ups! 3 thumb ups! (Log in to thumb up)
Barry Kislingbury
Barry Kislingbury - ACI Worldwide - London | 04 August, 2014, 12:29

Spot on Tim, real time / faster payments is the target now, lets hope it does not take another 15 years for Europe to catch up with the rest of the world.

2 thumb ups! 2 thumb ups! (Log in to thumb up)
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

22 May, 2014
19 May, 2014
29 April, 2014
04 February, 2014
20 January, 2014
24 October, 2013
01 February, 2013
05 May, 2011
01 October, 2009
28 January, 2008
23 August, 2007
20 July, 2007
08 January, 2007
15 September, 2006
13 September, 2006
26 May, 2006
03 May, 2006
07 October, 2005
03 December, 2004

Related company news


Top topics

Most viewed Most shared
UK sets out open banking API frameworkUK sets out open banking API framework
17056 views comments | 108 tweets | 91 linkedin
Deutsche Bank calls for co-operation with fintech firms on B2B servicesDeutsche Bank calls for co-operation with...
9502 views comments | 31 tweets | 30 linkedin
How to accelerate your fintech startupHow to accelerate your fintech startup
9198 views comments | 36 tweets | 10 linkedin
Is Paym a failure?Is Paym a failure?
7563 views 17 comments | 23 tweets | 16 linkedin
Visa issues API to offer consumer control over card transactionsVisa issues API to offer consumer control...
6826 views comments | 17 tweets | 28 linkedin

Featured job

Competitive Package
New York City, NY. USA

Find your next job