Opinion and Editorial
SEPA Roadmap: how to make SEPA a SuccessEuropean Commission Communication on "Completing SEPA: a Roadmap for 2009-2012"
30.10.09 BY Daniela Umstätter
In September 2009, the European Commission adopted a Communication on SEPA outlining a framework for action within six priority areas where greater involvement of all relevant actors over the next three years is required in order to achieve the full implementation of the Single Euro Payments Area. The European Commission's SEPA Roadmap sets clear deadlines for the accomplishment of the identified actions and addresses EU and national authorities, industry and users likewise. Daniela Umstätter has the details.***
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How to ensure that SEPA is delivered on time
While the EPC has been successful in designing the necessary Rulebooks for SEPA Credit Transfers (SCT) and SEPA Direct Debits (SDD), migration to the new SCT is very slow. In July 2009, one and a half years after the launch of SCT, only 4.4% of all credit transfers in the EU used SEPA standards. Going forward, it has to be ensured that SEPA is delivered on time and acts as a driver of greater competitiveness and higher growth, benefiting businesses and citizens alike. In its ECOFIN Council1 conclusions of 10 February 2009 the Council "recognised that the current financial crisis and economic slow-down provides opportunities for major efficiency gains and cost savings, thus requiring reinforced commitment to the project from all parties and invited the Commission and the ECB and the Eurosystem to continue their role in identifying the necessary actions for its successful realisation". The European Commission expects that payment service providers will increase their focus on retail financial services in the future. Integrated payment markets will play a key role in the future of these banks due to their pervasive role in our modern societies. SEPA lays the necessary foundations for this.
The SEPA Communication, which is also in line with the view of the European Central Bank, identifies six priority areas where greater involvement of all SEPA players is needed:
In order to minimise the costly period of running legacy and SEPA systems in parallel rapid migration is crucial with public authorities playing a key role, by being both early adopters and promoters of SEPA products. An efficient monitoring of the migration process will help anticipate and remedy possible migration problems. In addition, setting an end-date to the SEPA changeover could significantly boost the SEPA migration process.
Increase SEPA awareness and promote SEPA products
All parties involved in the SEPA changeover need to be fully informed about its numerous benefits. This could be achieved through targeted information and communication initiatives.
Ensure a sound legal environment and strengthen SEPA compliance
The removal of legal barriers and the design of proper business models which are fully in line with competition rules are cornerstones for a smooth SEPA take-up and increased competition in the payments market. The successful implementation of the Payment Services Directive and the new EU Regulation on cross-border payments provide a solid legal basis for SEPA. In addition, a way must be found to ensure the continued legal validity of existing mandates under the SEPA Direct Debit Scheme. In a self-regulatory context, efficient compliance monitoring deserves special attention.
SEPA should be a driver for the modernisation of retail payment markets, facilitating the use of internet and mobile phones to make payments and promoting the development of environment-friendly e-invoicing solutions.
Ensure necessary standardisation, interoperability and security
In a network industry such as payments, interoperable, open and highly secure standards which allow for full end-to-end, straight-through processing are essential in order to reap the full benefits of SEPA.
Clarify and improve SEPA governance
A greater steer is needed to ensure that the SEPA project stays on track, that rapid migration is realised and that the ultimate goal of a better service for users fully materialises. The European Commission therefore considers that there is a need for an over-arching SEPA governance model at EU level, which fosters integration of the euro retail payments market in a way that meets the needs of end users and is to be developed in close cooperation with all actors concerned. The main objectives of the new governance structure should be to define a clear strategic vision for SEPA, monitor and support SEPA migration and ensure transparency and accountability. In addition, given the crucial role of the EPC in the SEPA project, the EPC should continue its efforts to ensure transparency and early involvement of all stakeholders.
The European Commission will monitor closely the implementation of the SEPA Roadmap and publish progress reports on a regular basis.
Daniela Umstätter serves as Seconded National Expert with the European Commission, DG Internal Market & Services.
- The Economic and Financial Affairs Council is one of the oldest configurations of the Council. It is commonly known as the ECOFIN Council, or simply "ECOFIN" and is composed of the Economics and Finance Ministers of the EU Member States, as well as Budget Ministers when budgetary issues are discussed. The ECOFIN Council covers EU policy in a number of areas including: economic policy coordination, economic surveillance, monitoring of Member States' budgetary policy and public finances, the euro (legal, practical and international aspects), financial markets and capital movements and economic relations with third countries. It decides mainly by qualified majority, in consultation or co-decision with the European Parliament, with the exception of fiscal matters which are decided by unanimity.
Other articles in this issue
30.10.09 Update EPC Plenary Meetings - Main decisions taken in September 2009 By Gerard Hartsink 30.10.09 Creating smart SEPA Solutions - New EPC Publication: SEPA for IT Providers By Meral Ruesing 30.10.09 Going all the Way - EPC guidelines on customer reporting of SEPA Credit Transfers and SEPA Direct Debits By Eric Veronneau 30.10.09 Ready or not... - SDD roll-out possible in case of delayed national PSD implementation By Ruth Wandhöfer 30.10.09 Refunds and Returns revisited - Questions and answers on the correlation between the PSD and the SDD Schemes By Kevin Brown 30.10.09 The X Factor - Are EU governments still committed to making SEPA a reality? By Gerard Hartsink 30.10.09 Towards a SEPA migration end date? - Commission services publish feedback on public consultation on possible end date(s) for SEPA migration By Véronique Margerit 30.10.09 Yes we can - Part II - Belgium: a case study in successful migration to SEPA By Benoît Lempkowicz and Anne Demelenne 30.10.09 Facing the Facts in October 2009 - The EPC Newsletter tracks the progress of SEPA implementation By Herman Segers 30.10.09 Cashing out - National Central Banks commit to optimise cash handling in SECA: a progress report By Leonor Machado 30.10.09 EPC launches SEPA Direct Debit Schemes - European payments industry confirms commitment to making SEPA a reality By Gerard Hartsink 30.10.09 Better Business with SEPA Direct Debit - Corporate customers confirm benefits of SEPA implementation By Christian Westerhaus 30.10.09 The linking Pin - EPC and GSMA kick off public consultation on Trusted Service Manager requirements By Dag-Inge Flatraaker 30.10.09 New SEPA Scheme Rulebooks out now - EPC publishes new versions of the SCT and SDD Rulebooks on 1 November 2009 By Herman Segers
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