From today, more than 500 million citizens and 20 million businesses can use a single bank account for all euro credit transfers and direct debits in Europe

After 15 years, the Single euro payments area (Sepa) hits a major milestone today with the full implementation for credit transfers and direct debits in the euro area, one of the largest financial integration projects in the world.

1 August marks the (delayed) migration deadline for processing Sepa-compliant payment transfers, meaning that more than 500 million citizens and 20 million businesses can use a single bank account for all euro credit transfers and direct debits in Europe, according to ECB press release. Countries outside the euro area have until 31 October 2016 to migrate.

Every month more than 2 billion payments will now flow across the euro area in new standardised formats.
SEPA opens new avenues to Europe’s consumers and businesses.

It allows consumers to use just one euro bank account for all credit transfers and direct debits, no matter where in Europe the recipients or businesses may be. It strengthens consumer protection for direct debits, bringing in new rules to facilitate refunds.

It allows businesses to grow and to broaden their reach within Europe, and reduces costs by providing a standardised framework for all their payments. Businesses can now use a single system and set of accounts for all their euro trade in Europe.

“The successful completion of SEPA further accelerates Europe’s financial integration”, said Yves Mersch, ECB Executive Board member. “It removes barriers to credit transfers and direct debits which will no longer impede businesses or consumers.”