NEW HORIZONS OPEN UP
The The Single Euro Payments Area (SEPA) initiative will make all electronic payments across the euro area – by bank transfer, direct debit or by credit or debit card – as easy, quick and safe as domestic payments within one country are today. As the political obligation of the member states of the European Union to create a pan-union market, SEPA aims at empowering competition in retail payments and at completing what had been started with the adoption of the euro.
The new pan-European payment instruments will progressively replace existing national instruments in the course of the coming years. Implementation of SEPA started in 2008 with the SEPA Credit Transfer (SCT) for non-urgent credit transfers. SEPA Direct Debit (SDD) will follow in 2010, and later cards with new standards and rules will be introduced. Since 2008 already, newly issued bank cards must be able to be accepted by any merchant and by any ATM within the 31 SEPA countries (1). TThe official migration timeframe set by the European Commission and the European Central Bank is from 2008 to the end of 2010.
This evolution paves the way for several opportunities, such as to dematerialise the exchange of payment data or to automate the reconciliation of payments and invoices (e-invoicing or EBPP).
- For corporate treasurers, SEPA means end-to-end automated payment orders in all of Europe, for customers and suppliers alike, based on international standards and with the option to exchange enriched data in protected fields. Two scenarios exist:
- Minimal conformity to SEPA
- Ambitious capitalisation on SEPA features to improve payment methods and processes.
- For banks or any payment service provider, some challenges remain:
- To extend or consolidate its European footprint, with a broader payment offer for international customers
- To anticipate increased competition in its home market for pan-European payments – especially on the card segment due to newly created Payment Institutions.
ADN’co is specialised in the management of retail payments projects, and closely monitors developments in Europe, both the adoption of the Payment Services Directive and EPC’s SEPA specifications. ADN’co provides support and expertise in a variety of assignments to corporations and banks.
(1) SEPA encompasses 31 countries: the 27 EU members-states, plus Norway, Switzerland, Iceland and Lichtenstein.
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SKILL SET
SEPA AND ORGANISATION
- Project management: reviewing corporate SEPA strategies and optimising them
- Legal and business expertise in retail payments, including limited acceptance networks (luncheon or services vouchers):
- French and local law
- European law (the Payment Services Directive, Regulation on cross-border euro payments (2560-2001), revised Directive on e-money institutions...)
Example of assignments:
- For a large French multinational services company:
- Provided an information workshop on the consequences of SEPA on organisation
- Assessed the impact of SEPA on each division of the group’s flows and processes
- Coordinated compliance to SEPA in European subsidiaries and defined a roadmap.
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SEPA AND NATIONAL PAYMENT CARD MARKETS
- A European network of partnerships: processors, card schemes, clearing and settlement mechanisms/houses, banks
- Introduction to specifically selected businesses in France
Example of assignments:
- For a leading French bank and a private label issuer: conducted market studies and made recommendations on pan-European cross-border acquiring
- For new entrants in France: assessed their value proposition and assisted in positioning their business in light of existing market features, provided comprehensive business updates on key players and market characteristics, proposed various entry scenarios and provided support.
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SEPA EVOLUTIONS AND STRATEGY
- Analysis and defence of business interests with regards to European and national institutions
- Speech elements, support and participation at meetings with decision makers.
Example of assignments :
- Providing an Intelligence survey (one issue every two months) to subscribers that deals with:
- The strategies of Pan-European players -European legislation and decision making (DG ‘’Competition” of the European Commission, European Parliament)
- SEPA regulations (EPC, CAST, The Volume, PSD).
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