The European Parliament has announced plans to update the Single Euro Payments Area (SEPA) legislation in order to enhance cross-border payments within the European Union (EU).
SEPA was introduced by EU authorities in 2008 with the aim of harmonizing and simplifying electronic euro payments. It allows individuals and businesses to make cashless payments in euros to any bank account located within the region, regardless of national borders, under the same basic conditions, rights, and obligations.
However, with the changing financial landscape and advancements in technology, it has become necessary to modernize SEPA to ensure it aligns with the current needs and expectations of businesses and consumers.
The proposed update to the SEPA legislation will focus on several key areas:
- Real-time payments: The European Parliament aims to facilitate instant or near-instant payments, reducing the processing time for electronic transactions across borders.
- Increased security: The legislation will emphasize enhancing the security measures of SEPA payments to combat growing cybersecurity threats and protect sensitive financial information.
- Improved accessibility: Efforts will be made to make SEPA more accessible to individuals and businesses, including promoting the use of mobile devices for payments and ensuring compatibility with popular digital wallets.
- Standardization: The update will focus on further standardizing SEPA payment formats and procedures to facilitate seamless payment processing and minimize errors.
The European Parliament aims to have the revised SEPA legislation implemented within the next two years, following consultations with various stakeholders including financial institutions, consumer rights groups, and technology experts.
Read more: SEPA Regulation – European Parliament to update legislation
This update to the SEPA legislation is expected to have a profound impact on cross-border payment efficiency, security, and accessibility, benefitting both businesses and individuals across the EU. By modernizing SEPA, the European Parliament aims to foster a more integrated and dynamic digital payments landscape in Europe.