SEPA Migration: Facts and Figures

SEPA Migration: Facts and Figures

The state-of-play in October 2011

24 October 12

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Percentage of banks in offering Credit Transfer services

The European Payments Council () launched the Credit Transfer () Scheme in January 2008. As of October 2011, 4,503 payment service providers () in 32 countries offer services. Today, the delivering services represent more than 95 percent of payment volumes in Europe. Due to mergers and acquisitions, the absolute number of participants ( offering services) has slightly decreased compared to previous Single Euro Payments Area () market uptake reports featured in this newsletter. The Participant Register, which lists scheme participants, is publicly available at http://epc.cbnet.info/content/adherence_database

Percentage of transactions compared to the total volume of credit transfers generated by customers

According to the indicators compiled by the European Central Bank (ECB), the share of transactions as a percentage of the total volume of credit transfers generated by bank customers, amounts to 20.12 percent as of August 2011. The ECB Indicators can be viewed at http://www.ecb.europa.eu/paym/sepa/about/indicators/html/index.en.html.

A figure of 100 percent would indicate that only services are used and have fully replaced non- instruments. The Indicators are based on aggregated data provided by clearing and settlement infrastructures in the euro area processing transactions. This data avoids double counting by excluding, for example, transactions sent via links between infrastructures. The data also excludes 'on-us' transactions (SCTs between accounts at the same bank) as well as transactions cleared between banks bilaterally or via correspondent banking. The ECB Indicators also show market uptake by country.

Percentage of banks in offering Direct Debit services

The launched the Core Direct Debit () Scheme and the SDD Business to Business Direct Debit (B2B) Scheme on 2 November 2009. As of October 2011, 3,921 , representing more than 80 percent of payments volume have signed up to Scheme. Of those, 3,441 also adhere to Scheme. The separate Participant Registers for the and Schemes list the scheme participants taking part in these SDD Schemes. These registers are publicly available at http://epc.cbnet.info/content/adherence_database.

All branches of banks in the euro area must be reachable for cross-border direct debits; e.g. the Scheme, since 1 November 2010 as mandated by Regulation (EC) No 924/2009 (Article 8).

Percentage of SDD transactions compared to the total volume generated by customers

According to the SDD indicators compiled by the ECB, as of August 2011 the share of transactions, as a percentage of the total volume of direct debits generated by bank customers, amounts to 0.13 percent. The ECB SDD Indicators can be viewed at http://www.ecb.europa.eu/paym/sepa/about/indicators/html/index.en.html.

The figures are based on aggregated data from several clearing and settlement infrastructures / systems located in the euro area. As such, SDD transactions which are cleared bilaterally or processed within the same institution are excluded from this indicator.

for cards: tracking EMV roll-out

As reported in previous issues of the Newsletter, good progress is being made in the realisation of a for cards. The 's Cards Framework (SCF) outlines high level principles and rules that when implemented by the card industry, will deliver a consistent user experience to both cardholders and merchants when making or accepting euro payments or cash withdrawals. The SCF recognises the EMV standard for -wide acceptance of card payments. EMV is an industry standard to implement chip (and personal identification number (PIN) security) for card transactions to combat fraud. An important indicator on the progress in this area is the number of cards, POS and automated teller machines (ATMs) in the market that use chip and PIN for the authorisation of a card payment. More specifically, the percentage of EMV-compliant cards, POS and ATMs in is monitored.

At the end of the second quarter of 2011, 86.31 percent of cards, 93.66 percent of POS and 96.68 percent of ATMs in were EMV-compliant.

The progress of EMV roll-out, based on these findings and other relevant data on the subject, are reflected by the ECB Card Indicators at http://www.ecb.europa.eu/paym/sepa/about/indicators/html/index.en.html.

Corporate readiness

Gtnews reports in October 2011 that "according to the Survey 2011, an online survey carried out by the ECB and the European Commission on over 350 companies, 22 percent of corporates in the euro zone are already using for more than half of their payments and 24 percent no longer use domestic transfers. In the next two years, the percentage of companies that will make payments with the is estimated to reach 57 percent. Confirmation of the progress made by in the adoption of new payment instruments also comes from the figures of the three-year study 'Economic and Strategic Assessment of the Payments Business', conducted by CeTIF - Università Cattolica in collaboration with Capgemini Italia and SIA. The research involved a panel made up of the main Italian banking groups representing more than 70 percent of the Italian payments market where, in 2009, there was a total of around 1 billion transactions with a growth of estimated volumes at around 10 percent in 2010. In line with what emerged from the survey by the ECB and the European Commission, SCTs amount to more than 6 percent of total [corporate] transactions (estimate 2010), compared with 0.6 percent in the previous year. (...) Thus, the was the payment instrument with the highest growth since the volumes have increased by 977 percent, rising from nearly 1.1 million transactions in 2009 to about 11.8 million in 2010." A link to this article in gtnews is included under 'related links' below.

Public sector: ready?

In February 2011, the European Commission published its 4th Survey on Public Administrations´ Preparedness and Migration to (see 'related links' below). The survey reflects migration by the public sector as of October 2010. The main findings of the survey are:

  • Public administrations' (PAs) migration to has accelerated at an impressive pace over the last eight months. For the reporting period, the migration rate for the replying PAs in the euro area was 14.5 percent versus 2.7 percent in the previous survey. For the first time, migration by PAs exceeded the corresponding rate for the overall market (14.5 percent versus 9.6 percent in October 2010).
  • In particular PAs in Finland, Belgium, Austria, Spain, France and Germany have made significant progress over the last eight months.
  • Migration to SDD however, remains marginal due to the fact that in the case of many PAs, direct debits are generally not used. In October 2010, the SDD migration rate for the replying PAs in the euro area was 0.24 percent (again a higher rate than for the overall market).
Setting a deadline for migration to

As confirmed by the findings of a study requested by the European Commission in 2007, the benefits for bank customers inherent to the harmonisation exercise are contingent upon swift migration to a single set of payment instruments by both the demand and the supply sides1. The recognises the value of setting a deadline for migration to services. An end date for phasing out legacy euro payment instruments creates awareness, ensures planning security for all market participants and confirms the commitment to making a reality. In line with expectations expressed by EU finance ministers, the European Parliament and the ECB, the believes that end dates must be set for the phasing out of existing national euro credit transfer and euro direct debit schemes to ensure that the high costs of running multiple payment schemes in parallel can be eliminated.

In December 2010, the European Commission published a proposal for an EU 'Regulation Establishing Technical Requirements for Credit Transfers and Direct Debits in Euros' (commonly referred to as the ' Regulation'). This proposal states, in part, that credit transfers will be carried out in accordance with this Regulation twelve months after it comes into force; and that direct debits shall comply 24 months after it comes into force.

The European Commission's proposal for a Regulation was reviewed by the Economic and Monetary Affairs Committee (ECON) of the European Parliament and the European Economic and Financial Affairs Council (ECOFIN, comprising of the EU finance ministers)2 during the first half of 2011. Both institutions identified possible amendments to the European Commission's proposal. The ECON together with the ECOFIN and the European Commission are currently collectively engaged in a so-called 'trialogue' on this forthcoming legislative act. It is expected that the Regulation will be adopted by the end of 2011 or the start of 2012. For more information, refer to the articles ' Regulation: Last Call to Legislators' and 'Brave New World: the European Commission Becomes the Scheme Manager' (see 'related articles in this issue' below).

Etienne Goosse is the Secretary General.

Related links:

EPC Blog: SEPA - Are Corporates Ready to Make the Move?

For more information on co-decision or the 'ordinary legislative procedure' governing the European Union legislative process, click here

European Commission Proposal for a Regulation Establishing Technical Requirements for Credit Transfers and Direct Debits in Euros (December 2010)

EPC Response to the European Commission Proposal for a Regulation Establishing Technical Requirements for Credit Transfers and Direct Debits in Euros

Opinion of the European Central Bank on a Proposal for a Regulation Establishing Technical Requirements for Credit Transfers and Direct Debits in Euros (April 2011)

Economic and Monetary Affairs Committee (ECON) of the European Parliament: Final Report on the Proposal for a Regulation Establishing Technical Requirements for Credit Transfers and Direct Debits in Euros (July 2011)

European Commission Services' Fourth Survey on Public Administrations´ Preparedness and Migration to SEPA (February 2011)

European Commission Services' Third Annual Progress Report on the State of SEPA Migration (May 2011)

SEPA Council: Formal Declaration on End-Date(s) (June 2010)

Economic and Financial Affairs Council (EU Finance Ministers): SEPA Conclusions of December 2009 

Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on Cross-order Payments in the Community and Repealing Regulation (EC) No 2560/2001

The Website features a dedicated page ' Migration - Reports, Case Studies and Indicators'. This page includes Newsletter articles reporting on the migration experience in the different countries. To view this page, click here

Gtnews: Twenty-Two Percent of Corporates Already Using SEPA, Finds Survey

The gtnews story cited above is based on a press release by SIA: Increase in the Use of SEPA Payments in the Eurozone but the End-Date for the Adoption of the New Standards Must be Set Rapidly

Related articles in this issue:

UNIQA Group Austria: Business is Better with SEPA! Migration experience of this leading insurance company confirms: 'SEPA is an excellent and necessary idea' 

SEPA Scheme Rulebooks: Next Edition Available in November 2011! The EPC publishes new versions of the SEPA Credit Transfer and SEPA Direct Debit Rulebooks

SEPA Direct Debit for Billers: the SDD Core Scheme Timelines. EPC Newsletter series provides support for billers preparing migration to the SDD Schemes

SEPA Regulation: Last Call to Legislators. EPC invites European lawmakers to align Regulation with bank customer requirements

Brave New World: the European Commission Becomes the SEPA Scheme Manager. The EPC offers the regulator some insight on scheme development and rulebook release management

Related articles in previous issues:

EPC Newsletter articles published in the section 'SEPA Case Studies': Learn from the SEPA migration experience of early movers in the business and public Sectors!  

Light at the End of the (Harmonisation) Tunnel. Third Progress Report on the State of SEPA Migration Prepared by the European Commission Services confirms: mandatory end dates for migration to pan-European payment instruments are required ( Newsletter, Issue 11, July 2011)

Time to Prepare the Eulogy - 'Six Feet Under' for the Magnetic Stripe in SEPA. Eurosystem recommends migration to chip-only cards ( Newsletter, Issue 10, April 2011)

The Magnetic Stripe: Why it's Hard for Americans to Say Good-Bye. In the US, clinging to old-fashioned payment methods is more than just a bad habit ( Newsletter, Issue 10, April 2011)

So What's in a Name? Explaining payment schemes, instruments and systems. Clarity on payment terms is critical in the debate over the approach to setting end dates for migration to SEPA through EU Regulation ( Newsletter, Issue 8, October 2010).

 


1: Potential Benefits at Stake (Capgemini) available at http://www.europeanpaymentscouncil.eu/knowledge_bank_detail.cfm?documents_id=283.

2The ECOFIN is a configuration of the European Council representing EU Member States.



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