Sepa is not a compliance exercise

Industry professionals expect the PSD and Sepa to change the payment business

BOSTON – More than 60% of payment professionals expect their payments business to look different by 2010, according to a new survey from SAP.

Respondents believe the EU Payment Service Directive (PSD) and the Single Euro Payments Area (Sepa) are catalysts for wide-ranging industry change that will provide business opportunities for standardising payment systems.

Some 39% of European banks are expected to have a single enterprise-wide payments hub by 2010 to build standardised interfaces to other systems that support all payment types. On the other hand, 48% will implement a shared platform for their payments business that will link together Sepa payment on a common infrastructure, but still maintain some separation.

The survey of 90 bank representatives across 13 eurozone countries, six non-eurozone EU members and Norway was conducted by financial news service Finextra, together with the Sepa Consultancy and SAP.

In other findings, 37% of respondents have yet to fully map out the implications of Sepa for their corporate customers, as they are still formulating their own strategies. More than 93% of respondents will have signed the Sepa Credit Transfer Adherence Agreement by January 2008. To support Sepa credit transfers, almost 87% of banks say they will be adopting the new XML message types but 32% will only use this for interbank transfers. This finding suggests there is a lack of demand from corporations for banks to support the XML message types, which could be due to a lack of awareness about Sepa from many corporations.

Most surprisingly, 15% of payment professionals do not understand the implications of PSD, but most respondents agreed that the directive is a catalyst for industry change. The remainder of the respondents (2%) sees the PSD as a tick-box requirement for achieving Sepa compliance.

“This snapshot of Sepa revealed that the nature of payments needs to change by 2010, but there still remains the uncertainty and inconsistency across the industry on how this change is going to happen,” says Marc Derungs, vice-president of banking at SAP. “An overall theme heard from the results is that the current payment systems are disparate – creating inefficiencies. Integrated payment systems can alleviate this challenge and not only support Sepa compliance, but also provide new and upcoming business opportunities.”

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Modernising compliance functions with regtech

Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here