SEPA Migration: Facts and Figures

SEPA Migration: Facts and Figures

The state-of-play in April 2012

27 April 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 April 2012, 4,559 payment service providers () in 32 countries offer services. Today, the delivering services represent more than 95 percent of payment volumes in Europe. The Participant Register, which lists scheme participants, is publicly available 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 24.8 percent as of February 2012. 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 Single European Payments Area () 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 () Scheme on 2 November 2009. As of April 2012, 3,923 , representing more than 80 percent of payments volume have signed up to the Scheme. Of those, 3,444 also adhere to Scheme. The separate Participant Registers for the and Schemes list the participants taking part in these 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 February 2012 the share of transactions, as a percentage of the total volume of direct debits generated by bank customers, amounts to 0.4 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, points of sales (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.

Migration to chip and PIN in is essentially complete. At the end of 2011 (estimates), 87.2 percent of cards, 94.2 percent of POS and 96.7 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

The information included here reflects findings previously reported in the January 2012 edition of the Newsletter (no updated data was published since then).

The gtnews Payments Survey 2011, asked its corporate readers to rank instruments among regularly used methods to make and receive payments. Just over a third of respondents said they regularly made payments via , while 14 percent used SDD. The results are almost identical for corporates receiving payments via instruments. Almost 20 percent of corporate respondents already invested in compliance and more than 40 percent said that investment plans were already in the making, whether that is within a three-month timeline or just 'at some point'. The 2011 Payments Survey results also show that some corporates are still hesitant to invest in services. When asked if their organisation planned to make that investment in the future, 20 percent of those corporates operating in western Europe stated they had no plans. These findings however, reflect a step forward in terms of uptake compared to the Payments Survey 2010, when almost 50 percent of corporates said that they were not planning a investment.

The ECB and the European Commission have also conducted surveys in the European corporate sector about practices in making and receiving payments, invoicing and migration to . The report titled 'European Business Test Panel (EBTP) Survey 2011. How do you pay? How would you like to pay?' (see 'related links' below), summarises the results of and draws conclusions from the fourth survey of this kind, which was conducted in early 2011. The report indicates that " migration in the corporate sector is proceeding well". 22 percent of respondents indicated that they use for more than half of their company's outgoing payments. Over 24 percent of participants responded that national credit transfers are not used any more. In comparison with this, direct debit payments are less in use. 70 percent of all respondents indicated they do not or only infrequently pay via national direct debits. 42 percent of responding companies however, have already made payments using SDD; and 37 percent have already received payments via this new instrument."

Public sector readiness

The information included here reflects findings previously reported in the January 2012 edition of the Newsletter (no updated data was published since then).

In November 2011, the European Commission Services published the fifth survey on public administrations' preparedness and migration to (see 'related links' below). This survey finds that public administrations' (PA) migration to has accelerated since the last survey, with the overall migration rate increasing from 14.5 percent in October 2010 to 24.9 percent in June 2011. The report also states:

  • PA in many European Union (EU) Members States in the euro area seem to be taking over the lead for the migration at national level, namely in Finland (90.9 percent), Belgium (77.4 percent), Slovenia (65 percent), Austria (60 percent), Germany (37.6 percent), France (21.1 percent) and Spain (16.5 percent) and are expected to make further progress or fully complete migration to in the coming months.
  • Nevertheless, a number of euro area EU Member States are still lagging behind and their migration to is progressing at an extremely slow pace, with the rate often not exceeding one percent of total credit transfers volume, namely in Greece (0.01 percent), Estonia (0.10 percent), Ireland (0.2 percent), Slovakia (0.5 percent), Cyprus (0.8 percent), Netherlands (1.2 percent) and Italy (2.3 percent).
  • PA migration to SDD stays close to 0 percent, with only a few using SDD (in particular in Belgium and Germany). It is however, important to stress that direct debits are generally not used by PA, or to a very limited extent.
Regulation sets deadline for migration to

On 30 March 2012, the 'Regulation () No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009' (the Regulation; see 'related links' below) was published in the Official Journal of the European Union. The Regulation defines 1 February 2014 as the deadline in the euro area for compliance with the core provisions of this Regulation. Effectively, this means that as of this date, existing national euro credit transfer and direct debit schemes will be replaced by and SDD.

For information supporting market particpants to achieve compliance by the deadline set in the Regulation, please refer to the sources below.

Etienne Goosse is the Secretary General.

Related links:

Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009

EPC Blog Series: Get Ready for SEPA by February 2014. Early Movers on the Customer Side Share Lessons Learnt

EPC Website: SEPA for Customers

EPC Website: SEPA Migration - Reports, Case Studies and Indicators

EPC Blog: SEPA Gaining Ground with Corporates

European Central Bank and European Commission Report: European Business Test Panel SEPA Survey 2011. How do you pay? How would you like to pay?

European Commission Services 5th Survey on Public Administrations Preparedness and Migration to SEPA (November 2011) 

Related articles in this issue:

Step Up to the Challenge: SWIFT White Paper Sets out Steps to Build a SEPA Migration Plan. A strategy to achieve SEPA compliance by 1 February 2014

Villeroy & Boch: 'The Long Term Benefits of SEPA Exceed the Short Term Efforts to Get There.' The group completed migration to SEPA Credit Transfer in 2008 and migration to SEPA Direct Debit in 2011

The Time to Act is Now: Impact of the SEPA Regulation on Payment Service Users. The SEPA Regulation includes provisions relevant for both the demand and supply sides of the payments market

Early Movers Confirm: ISO 20022 Message Standards Generate Tangible Benefits. A guide for payment service users on the impact of provisions in the SEPA Regulation regarding the use of the ISO 20022 message standards

SEPA Direct Debit for Billers: Exception Handling. EPC Newsletter series provides support for billers preparing migration to the SDD Schemes

Related articles in previous issues:

EPC Newsletter: Articles Published in the Section 'SEPA Market Uptake'

EPC Newsletter: Case Studies Highlighting Successful SEPA Migration Projects of Bank Customers

EPC Newsletter: Articles Published in the Section 'Focus: SEPA Migration'



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