EPC publishes the Single Euro Cash Area Framework

Monday 27 June 2016 11:17 CET | News

The European Payments Council (EPC) has published the updated SECA Framework to reduce the cost of cash in Europe and improve its quality and trustworthiness.

Since the introduction of the euro in 2002, the cash has increased in the Eurozone: between 2002 and 2016, the number of banknotes in circulation has increased by 133%, while their value rose by 380%, totalling more than 1 trillion Euro. The cost of has increased by 30% between 2002 and 2012. This cost was already high before the launch of the Euro. As it is often imperfectly charged to actual users, cash may be cross-subsidised by other bank revenues, contributing to burdening the pricing of other banking services.

The EPC believes that Euro countries should strive for a decrease of cash usage. It is however the most popular payment instrument in most countries, and therefore priority should be given to the reduction of the cost of cash.

To reach this goal, the objective of the SECA Framework (aimed at regulators, banks, retailers, and other cash players) is to define banking industry requirements for core cash services provided by National Central Banks (NCBs), from a user perspective and to outline a common set of banking best practices for the efficient distribution and recirculation of euro cash in the Eurozone.

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Keywords: EPC, cash, payments, SECA, Eurozone, banks
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce