Single Euro Payments Area (SEPA)

What does it mean for SMEs?

Marieke van Berkel, Head of Department Payments and Securities, EACB

Niklas Bartelt, Head of Product Management Operations & Services, DZ Bank AG

European Association of Co-operative BanksGroupement Européen des Banques Coopératives

Europäische Vereinigung der Genossenschaftsbanken

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 2

Agenda

SEPA overview (EACB)

Background

What is SEPA

Stakeholders

Potential benefits for SMEs (DZ Bank)

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 3

SEPA - background

Political objective of “internal market”

Introduction of the Euro – single market for “physical” payments

Need to create a single market for “electronic” payments Interbank rules and standards – SEPA Legal framework – Payment Services Directive

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 4

What is SEPA

Response of the banking industry to “internal market” objectives

Roadmap for SEPA 2004

Interbank standards and rules for payments in Euro’s for core and basic services Based on straight through processing Executed between customer accounts in SEPA

Focusing primarily on Credit transfers SEPA Credit Transfer (SCT) Direct Debits SEPA Direct Debit (SDD) Payments by Card SEPA Card Framework (SCF)

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 5

What is SEPA

Geographical perimeter

the 27 EU Member States Iceland, Liechtenstein, Norway (EEA) Switzerland (EFTA)

but with priority for implementation in the Euro zone

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 6

What is SEPA

Legal perimeter – Payment Service Directive (PSD) PSD ≠ SEPA Overhauls existing legal framework “harmonises” rights and obligations of users of

payments instruments Introduces “payment institutions” Complements the SEPA programme

Publication in Official Journal imminent. Ultimate transposition date : November 2009!

Will apply to payments in euro and EU currencies in EU MS

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 7

What is SEPA

Calendar

SEPA Credit Transfer 28 January

Payments by Card as from January 2008

SEPA Direct Debit align with PSD

Migration under discussion

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 8

Stakeholders

Banking sector - SEPA programme European Payments Council

European Commission – legal framework Payment Services Directive “monitor”

European Central Bank “monitor” and stimulator Supervisor

Users, service providers

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 9

Stakeholders

Dialogue with users and other stakeholders

At European level EPC/European banking associations versus user

associations More and more structured stakeholder forum 2007

Consumer organisations Merchants (invited) SMEs Corporate treasurers Public administrations (invited)

At national level National banking associations versus national user

associations

European Association of Co-operative Banks (EACB): www.eurocoopbanks.coop 10

Useful links

European Payments Council (EPC):http://www.europeanpaymentscouncil.eu

European Central Bank:http://www.ecb.de/paym/sepa/html/index.en.html

European Commissionhttp://ec.europa.eu/internal_market/payments/sepa/index_en.htm