European Commission adds an additional transition period of 6 months for SEPA migration

Friday 10 January 2014 08:22 CET | News

The European Commission has proposed an extra transition period of six months during which payments outside the Single Euro Payments Area (SEPA) format will still be accepted.

The extended deadline came after lower migration rates than anticipated and will run until August 2014. The Commission has stated that the proposal does not change the formal deadline for migration of 1 February 2014.

The Single Euro Payments Area (SEPA) is where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location.

The SEPA Regulation adopted in 2012, aims to create the reality of a European Single Market for retail payments. The SEPA Regulation marks 1 February 2014 as the point at which all credit transfers and direct debits in euro should be made under the same format: SEPA Credit Transfers (SCT) and SEPA Direct Debits (SDD).

The Commission and the Eurosystem have been monitoring progress of all stakeholders: banks, payment institutions, national and local administrations, corporates (including small and medium-sized businesses), and consumers. Although migration rates have been growing over the last few months to reach 64.1% for SCT and 26% for SDD in November, it is now highly unlikely that the target of 100% for SCT and SDD can be reached by 1 February 2014.

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Keywords: European Commission, SEPA, payments , credit transfers
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce