In 2002, the European banking industry formulated a vision of a single market for payment services, the Single Euro Payments Area (SEPA). Through SEPA it is possible to send and receive electronic payments in euro, both national and cross-border transfers. This should function in the same way, with the same conditions and at the same price as for domestic payments.
The three European banking associations and their member banks formed a single organisation – the European Payments Council (EPC) – which was given the task of running and coordinating the European banking industry’s SEPA activities. The EPC has mainly worked on producing two new pan-European payment services – account transfers and direct debit – and a framework for charge cards.
Just over five years ago the first SEPA payment service was introduced by banks in all of the 27 EU countries and in Iceland, Liechtenstein, Norway and Switzerland. With effect from 28 January 2008 it is possible to send and receive SEPA account transfers. By November 2009 it should also be possible to pay via SEPA direct debit. As regards the card payments, a framework for charge cards was introduced on 1 January 2008. In the long term all charge cards will be able to be freely used in all EU member states.
For more information about SEPA and the new pan-European payment services, see the links below to the Swedish Bankers’ Association, which coordinates the Swedish banks’ participation in the EPC, and to the ECB and the European Commission, both of whom are strongly committed to SEPA.