An integrated euro payments market comes a major step nearer – key SEPA project close to implementation

The European Payments Council (EPC) has met further important prerequisites for realising the Single Euro Payments Area (SEPA). The European banking industry body with chief responsibility for the integration of euro payment systems today adopted drafts of new European schemes for direct debits and credit transfers as well as the SEPA Card Framework (SCF) for the processing of card payments. The EPC has thus succeeded, after a development phase of only just under three years, in drawing up solutions for the future European payment instruments.

The German banking associations and bank representatives working together in the SEPA office of the Zentraler Kreditausschuss (ZKA) have played a major role in developing the new European payment instruments in the bodies of the EPC. This has enabled important aspects of the highly efficient German payment systems to be incorporated into the new European schemes. “This development underlines the German banking industry’s commitment actively to shape and move forward the integration of Europe’s financial markets”, stress the leading associations of the German banking industry which together make up the ZKA. SEPA will be created primarily by developing efficient solutions through self-regulation. The German banking industry is convinced that the European Commission and the European Central Bank will recognise and support this development.

The draft schemes will now be submitted to Europe’s national banking industries for consultation and review by each participating country. Successive implementation of the European payment instruments is scheduled to begin after their final adoption by the EPC in December 2005. The EPC’s goal is to enable bank customers to make cross-border payments in euros just as easily and safely as they do domestic payments today. It is intended that from January 2008 onwards customers will be able to use corresponding products alongside existing payment instruments.

The SEPA credit transfer consolidates the specifications of existing European agreements on cross-border transfers into a single rulebook and thus guarantees standard handling across Europe. A basis for the scheme was provided by the “EU-Standardüberweisung” (EU standard credit transfer), which has been available in Germany since 2003.

The SEPA direct debit is the first instrument to be developed for cross-border direct debit payments. The scheme builts on key aspects of the direct debit system used in Germany.

The SEPA Cards Framework defines general specifications for card systems and aims at significantly simplifying card payments throughout Europe. Consumers should be able to use their cards anywhere in Europe in the same way as they do in their own country.

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