SEPA: Part Deux
By elise.mattei on Jan 22, 2008
This entry is a continuation of my quest for understanding and knowledge of the hot topics in the Payments arena as a new Strategist for that module. Please see the first part below: A Primer on SEPA.
Why is SEPA important?
SEPA�s adoption means fewer charges on transactions and purchases in euros. On the consumer side of things, it could mean you'll be able to buy things on your card in another European country and pay nothing more than you would domestically. On the business side, it'll mean the same thing - moving money around should be as cheap as it is domestically. A more competitive and innovative euro retail payments market will bring with it higher service levels, more efficient products and cheaper alternatives for making payments. Banks will have to sharpen up their IT systems to replace manual processes with automatic ones in order to bring down costs � all good for corporates as well as consumers.
Do I care if I don�t do business in Europe?
YES! No matter where you do business on the globe, standardization of retail payments is a goal to aspire to. Making payments inefficiently is an avoidable drain on organizational resources. Transactions within the SEPA regime will be based upon the ISO20022 payment message � a global payment standard that will be made widely available on an �out-of the-box� basis by most (if not all) major software vendors. You don�t have to go global to benefit from SEPA � but you can gain efficiencies and save on payment processing costs by adopting the global payment standard upon which it is based.
SEPA Compliance (EBA)