The European Payments
Council (EPC), the co-ordination and decision-making body of the
European payments industry, has published its 2009 annual report,
which highlights the “substantial progress” achieved in delivering
several initiatives for the Single Euro Payments Area
(SEPA).
Among the initiatives highlighted
is the SEPA Cards Framework (SCF), which has been designed to
enhance levels of inter-operability within SEPA by defining common
standards in order to improve transparency and remove barriers to
the development of a SEPA for cards.
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In December 2009, the EPC approved
version 2.1 of the SCF for publication, updating the version
originally issued in March 2006. In addition, the SCF was aligned
with the Payment Services Directive and European Commission
regulations on cross-border payments.
The EPC stated in its annual report
that it is considering the publication of a further revised version
of the SCF in 2010.
In response to changing customer
habits, significant progress was achieved in the design of the SEPA
e-Payments Framework facilitating online payments with a
payment-guarantee for online retailers followed by a SEPA Credit
Transfer.
In addition, the EPC Roadmap
for Mobile Payments approved in March 2009 spells out the main
deliverables in the areas of SEPA card proximity payments and SEPA
card mobile remote payments.
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By GlobalDataMoving the focus to
mobile
According to the EPC, mobile
payments will be a key area of focus, given that the mobile channel
is an “ideal launch pad for SEPA payment instruments”.
The EPC is collaborating with
mobile operators and other stakeholders to establish the necessary
standards and business rules with regard to the initiation and
receipt of credit, debit and other card payments through mobile
phones. The aim is to establish proposals that are ripe for
collaboration and standardisation and which form the basis for
interoperability.
The intention is to establish a
service framework sufficient to reach potentially all payers and
payees in the European Economic Area, and to create a trusted and
secure environment that multiple stakeholders can use to facilitate
SEPA payments initiated through the mobile channel in a convenient
way.
“At the same time, a common
technical interoperability and business framework will avoid market
fragmentation which would hinder the emergence of open,
non-proprietary technology standards for user-friendly mobile
payment services,” the report stated.
The EPC Roadmap for Mobile
Payments will cover SEPA card proximity payments for all usage
cases except person-to-person; SEPA card mobile remote payments for
person-to-business, business-to-business and person-to-person; and
SEPA credit transfer mobile remote payments in all usage cases.
The EPC added that significant
progress is also being made in relation to the development of
contactless near-field-communication (NFC) payments using mobile
phones, “a project which enjoys the highest priority”.
Also in 2009, the EPC – together
with representatives of the main sectors active in the cards domain
including retailers, vendors (manufacturers of cards, payment
devices and related IT systems), processors and card schemes –
established the Cards Stakeholders Group, mandated to progress the
use of open and free standards available to all parties in the SEPA
cards market.
In November 2009, the EPC
successfully launched the SEPA Core Direct Debit Scheme and the
SEPA Business to Business Direct Debit Scheme. As of this date,
banks throughout SEPA are gradually starting to deliver SEPA Direct
Debit services to their customers. All branches of banks in the
eurozone must be reachable for SEPA Core Direct Debit by 1 November
2010 as mandated by the EU Regulation on Cross-border Payments in
the Community.
EPC Chair Gerard Hartsink said: “The EPC annual report for 2009
demonstrates the continued commitment of the European payments
industry to making SEPA a reality. The successful conclusion of
this harmonisation exercise requires action by all
stakeholders.
“The EPC welcomes the fact that the EU finance ministers
represented in the Economics and Financial Affairs Council
recognise that setting a deadline for migration to SEPA provides
the clarity and the incentive needed by the market; will ensure
that the substantial benefits of SEPA are rapidly achieved; and
that the high costs of running both legacy and SEPA products in
parallel can be eliminated.”
