SEPA
Single Euro Payments Area (SEPA) is a payment integration initiative that harmonizes electronic euro payments across 36 European countries. It creates a unified payment ecosystem where cross-border transactions are as efficient, cost-effective, and convenient as domestic payments. SEPA was established through European Union regulation and industry collaboration, removing the distinction between national and cross-border euro payments within the designated area.
Core payment instruments
- SEPA Credit Transfers (SCT): one-off and recurring euro transfers
- SEPA Direct Debits (SDD): automated recurring collections, including Core and Business-to-Business schemes
- SEPA Instant Credit Transfers (SCT Inst): real-time euro payments available 24/7/365, typically settling within 10 seconds
All EU member states plus Iceland, Liechtenstein, Norway, Switzerland, the United Kingdom, Monaco, San Marino, Vatican City, and Andorra—covering over 500 million consumers and businesses.
SEPA compliance is enforced through the (PSD2), which sets standards for euro payments and establishes consumer protection measures.
