German banks and savings institutions offer “electronic cash” scheme across Europe

The German banking industry will offer its “electronic cash” card payment system to banks and customers across Europe in future. According to the Zentraler Kreditausschuss (ZKA), this means that Germany’s banks and savings institutions are first to provide a simple and convenient means of payment for the Single Euro Payments Area (SEPA).

Harmonisation of the European payments sector is of crucial importance for the completion of the Internal Market. The condition for creation of SEPA is the development of pan-European payment instruments. On 21 September 2005 the European Payments Council (EPC), the European banking industry body in charge of creating SEPA, will present the SEPA Cards Framework (SCF) defining general requirements for card schemes designed to make payment throughout Europe much easier. The aim is to enable consumers to use their card in the whole of Europe in exactly the same way as they do at home. The ZKA points out in this context that the “electronic cash” scheme meets all the requirements of the SEPA Cards Framework. Also, the German banking industry does not charge any licensing fees for participation in the “electronic cash” scheme.

Neither participation in the “electronic cash” scheme nor its operation are therefore limited nationally, both being open to participants from other European countries. The “electronic cash” scheme’s price structures are not restricted to Germany either, but apply throughout Europe. At the same time, the scheme rules ensure maximum competition between the participating banks, network operators and processors. Any undertaking that meets certain technical requirements can in principle offer its services freely within the “electronic cash” scheme. This competition guarantees a high level of efficiency.

The German banking industry is convinced that the “electronic cash” scheme is thus an attractive option for banks and system operators in Europe wishing to meet the EPC requirements. Participation in the “electronic cash” scheme or an alliance with the German banking industry are open to all banks and undertakings. First promising talks have already been held with partners outside Germany.

Contacts

ZKA chair:
Heiner Herkenhoff
Association of German Banks
+49 (30) 1663 - 1200

Dr. Helga Bender
Association of German Pfandbrief Banks
+49 (30) 20915 - 330

Dr. Stephan Rabe
Association of German Public Sector Banks
+49 (30) 8192 - 160

Kirsten Bradtmöller
Federal Association of German Cooperative Banks
+49 (30) 2021 - 1300

Stefan Marotzke
German Savings Banks Association
+49 (30) 20225 - 5110