The SEPA initiative

In today's financial marketplace, customers are demanding improved services and want a prompt payment processing system that is consistent both within their home country, and in other European markets.

Each European country has developed its own banking and payment system in accordance with local market requirements. The result has been a varying level of payments service for customers. This is particularly noticeable to citizens who cross borders regularly to shop and holiday within Europe.

To address this problem, the EPC, in 2002, proposed a single payment process. At that time, 42 banks, and three European Credit Sector Associations (ECSAs), came together to release a proposal formally launching the SEPA concept.

The definition of SEPA was approved by the EPC in December of 2004 and states that:

"SEPA will be the area where citizens, companies and other economic actors will be able to make and receive payments in euro, within Europe (currently defined as consisting of the 28 European Union (EU) member states plus Iceland, Norway, Liechtenstein and Switzerland), whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location."