The European Central Bank’s blog analysis “SEPA: Europe’s unsung hero”, published on 3 November, discusses the development of cross-border euro payments in Europe. The authors emphasise that the benefits of geographical expansion do not materialise overnight: a country’s inclusion does not itself immediately create a fully functioning payment system.
In the Central and South-Eastern European survey used in the analysis, fewer than 40% of consumers had heard of SEPA. This result does not describe awareness among Estonian consumers. The publication is an analysis, rather than a new legal rule. ECB blog analysis.
The service promise must reflect the specific payment route
For example, a payment institution wishes to offer transfers to a country recently added to SEPA. Finding that country on the SEPA list is not enough to promise payments to every account there at the same speed and price.
Before launching the service, we recommend checking:
- whether the particular recipient’s provider is reachable through the required payment scheme;
- whether the service offers a standard credit transfer or an instant payment;
- the currency in which funds are sent and credited to the recipient’s account;
- the service charges and currency conversion costs that may arise;
- how rejected, returned or delayed payments are handled.
The results should be reflected consistently in contractual terms, the price list, the customer interface and customer support instructions.
The message “SEPA payments are available” needs qualification where material restrictions apply. What matters to the customer is whether their particular payment reaches the intended recipient, when it arrives and how much it costs in total.