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You are here: Home -> SEPA -> SEPA Beneficiaries A A 

Benefits for Consumers:

The consumer will be the major beneficiary of the SEPA, which will offer greater choice of service, competition and flexibility. A consumer wishing to pay for services within any of the European countries involved in SEPA, (i.e. phone or utility bills, maintenance on property abroad, etc.), may now do so using one domestic account, the need to open a separate overseas account. It also means that people who live, work or study outside their own country may use their account in their home country to complete all their transactions.

 

Customers will also be able to use the same payment card for all euro payments within the participating countries, making the use of cards more efficient. The primary aim of SEPA is to enhance the provision of all electronic payment services to the customer - this will open up the market to innovative services such as e-invoicing, e-ticketing, mobile and Internet payment initiatives, etc., all designed to make the payment process less time-consuming and simpler for the customer.

Benefits for Merchants:

Payment cards are increasingly becoming the preferred method of payment for consumers, replacing cheques and cash, and this trend is predicted to continue. To accept card payments merchants need an agreement with an acquiring bank, who processes card payments for them.

 

In the SEPA world all acquiring banks will have the facility to process all SEPA-compliant card payments, including cross-border. This will allow the merchant to choose any acquirer bank within the euro area to process their card payments, increasing competition and driving down costs. The merchant will also benefit from a wider choice of terminal providers in the marketplace. Therefore merchants will be able to accept a wider range of cards with a single terminal at point-of-sale.

Benefits for Companies:

SEPA will help companies simplify their management of payments. Companies will be able to make all euro transactions, domestic or cross-border, from one bank account, using SEPA payment instruments. All incoming and outgoing payments will be in the same format, making handling of such payments much easier, quicker and cost-effective.

 

Companies will also benefit from the standardised system as it will open up the market to value-added services such as standard e-invoicing and e-reconciliation, suitable for the full SEPA marketplace.

Benefits for Banks:

As banks can now offer their services cross-border within the euro area, they will benefit from the expansion of their market. Banks will be able to compete for business, both corporate and consumer, within the participating countries and they may also offer customers value-added services to attract a larger share of the market.

 

SEPA will also allow stakeholders to negotiate better conditions with their service providers, as it provides a single set of rules, equal and open access, reachability, transparency and interoperability, all of which will encourage competition.

Benefits for Infrastructure Providers:

Infrastructure providers will no longer be bound by national borders and will be entitled to offer their services supporting the SEPA payment instruments throughout the euro area, increasing the size of their marketplace, and allowing them compete freely.

 

As there will now be a common set of technical standards, interlinking with different infrastructure providers will become possible. Card processors will be able to serve different card schemes and acquirers throughout the SEPA area.