The views expressed in this article are solely those of the author and should not be attributed to the European Payments Council.
Eric Véronneau was among the first recipients of the EPC Distinguished Contributor Award in June this year, honoured for his significant contributions and unwavering dedication to the EPC. In this exclusive interview, he shares invaluable insights from his extensive industry experience, reflecting on the evolution of the EPC and the future of payments in Europe. From key industry developments to anecdotes from his time at the EPC, Véronneau provides a thoughtful and engaging perspective on the past, present, and future of European payments.
You have been actively contributing to the EPC’s activities for many years, including the establishment of the SCT and SDD schemes. How has the EPC evolved over time?
At the beginning, the EPC was very focused on delivering the two basic Single Euro Payments Area (SEPA) payment schemes. Over the years, the EPC then had to adapt its organisation and its working streams to the evolutions of the payment landscape. This can be seen in the maintenance of the running schemes as well as in the development of new schemes, either payment schemes or schemes servicing payments like SEPA Request-to-Pay (SRTP) or SEPA Payment Account Access (SPAA). Here, one of the difficulties for the EPC is to feel and gauge which industry trends will be successful. In this, the quality and knowledgeability of its board and general assembly members is key.
What are the most important developments that the European payments landscape has experienced over the last five years?
The last five years have been characterised by a rapid digitalisation of payments and the emergence of new payment solutions that are either completely separate to existing payment means or built on top of them – for example, EPC schemes or card payments. This movement has been accompanied and encouraged by a growing desire for instantaneity or certainty of payment and by the use of mobile phones as the central devices for making any kind of payment.
What do you think about the digital transformation of payments today?
With the digital transformation and regulatory developments, the distinction between card payments and credit transfers and even direct debits is fading away.
The digital transformation allows the use of credit transfers in purchasing situations where the card payments were prevalent. This is clearly the case on the internet and also a reality at the point of sale. The European Payments Initiative (EPI) with its Wero offer is the expression of this evolution, as are SPAA and RTP.
How do you see the European payments landscape evolving in the next five years?
The distinction between card payments, credit transfers, and direct debits will continue to disappear. The service provided to the customer in support of their purchase or their need to transfer funds will become paramount. Such services will be provided either to the payer or the payee and they will drive the evolution of the payment solutions. Is the instantaneity important? In which situation and for which of the actors, the payer or the payee? Will services like deffered debit and/or Buy Now, Pay Later (BNPL) be transposed to credit transfers and direct debits? Which type and which modality of reimbursement will be offered? Which type of reporting? Digital wallets will contain the different means of payments, and the customer will choose the service he needs rather than a payment means as such. And the growing interoperability possibilities between payment systems will allow the expansion of this evolution to international payments, from or to the European Union (EU). The EPC is already looking in this direction with the One-Leg Out Instant Credit Transfer (OCT Inst).
Certainly, the options for the European Central Bank (ECB’s) retail electronic euro and its date of entry into force may also change the landscape but will not change this trend of ‘service first’.
Finally, what are your most amusing or interesting anecdotes about your extensive personal experience at the EPC?
There are plenty of anecdotes to tell! I like the memories of the very beginning: the meetings of the very first working group, which dealt with both credit transfers and direct debits, took place in an extremely serious atmosphere. The facilitator, a British guy, was very strict about banning the use of mobile phones and would become very angry if he saw or heard one. The ‘offender’ had to immediately stop their phone or leave for a few moments. From time to time, I think it would be good to return to such tough rules.
At the beginning of the work on direct debits, we had some surreal and incredibly long discussions about whether the scheme we were developing was a core or basic direct debit. And it turned out that the non-native English-speaking participants were opposed to the native ones. Despite any explanation given by the British facilitator about the difference between ‘Core’ and ‘Basic’, the non-native English-speaking members were voting for ‘Basic’ while the English speakers were choosing ‘Core’. In the end, the clever facilitator suggested ‘Core and Basic’, which suited everyone. Curiously, when the first Direct Debit Rulebook came out, about two years later, it mentioned only ‘Core’ – and nevertheless, the scheme functions perfectly!
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