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On 28 January 2008, in a joint statement, the European Commission and the European Central Bank welcomed the formal launch of SEPA (Single Euro Payments Area) payment instruments by EU banks.
SEPA is the area in which citizens, companies and other economic actors will be able to make and receive payments in euros, within Europe, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location. In other words making euro payments throughout Europe will become as easy, cheap and secure as making national payments.
More precisely, SEPA aims at harmonizing the millions of everyday electronic payments made with credit transfers, direct debits and payment cards (debit and credit cards). It will facilitate customers to make and receive non-cash euro payments anywhere in the Single Euro Payments Area (i.e. EU 27, plus Iceland, Liechtenstein, Norway and Switzerland), by using a single bank account and set of payment instruments. Consequently, SEPA is a natural evolution to the introduction of the euro and will produce substantial benefits through a more competitive and efficient payments market.
In a joint statement, the European Commission and the European Central Bank welcomed the official launch of the first SEPA payment instrument for credit transfers, which took place on 28 January 2008. This launch marks the first step in a migration process over the next few years during which customers will move in a market-led process from existing national electronic payment instruments to the new SEPA instruments. For technical and legal reasons, the launch of the SEPA payment instrument for direct debits will take place subsequently, but should occur no later than 1 November 2009. Regarding card payments, the SEPA Cards Framework has been in force since 1 January 2008.
Created by the European banking industry, through the aegis of the European Payments Council, SEPA is expected to significantly improve the efficiency of EU payment markets and stimulate innovation, thereby increasing the competitiveness of the European economy. In the public sector, SEPA could contribute to faster credit transfers throughout the economic area and can additionally help drive eGovernment and eProcurement, thus promoting more efficient public services.
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