Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Belgian migration to SEPA (Single Euro Payments Area)

Contents:

Author Info

  • J. Vermeulen

    (National Bank of Belgium, Financial Markets Department)

  • A. Waterkeyn

    (National Bank of Belgium, Financial Markets Department)

Registered author(s):

    Abstract

    The main aim of SEPA (Single European Payment Area) is to promote financial integration in Europe, more particularly in the field of cashless payment services and payment systems. It is intended to enable all economic players (businesses, consumers and public authorities) to effect payments anywhere in the SEPA zone (the 27 EU countries plus Iceland, Liechtenstein, Norway and Switzerland) as easily, securely and efficiently as domestic payments. It must also be possible to execute these payments in accordance with a single regulatory framework within which all players have the same rights and obligations. To that end, the European Parliament and the Council adopted a directive on payment services in the internal market, which has to be transposed into national law by 1 November 2009. The SEPA migration is a process whereby the current national payment instruments are gradually replaced by standardised European instruments. More precisely, European instruments have been developed for credit transfers and direct debits, while a general framework has been set up for payment cards. The development of standards for these payment instruments and the organisation of the migration to SEPA were largely decided by the banking sector. For that purpose, interbank consultation bodies were set up at national and European level, and special structures were created to encourage societal dialogue concerning SEPA and its implementation. In Belgium, the organisational structures behind the SEPA migration are the “Steering Committee on the future of means of payment” and the SEPA interbank Forum. SEPA is being created in phases. The signal for the operational launch was given just over a year ago : since 28 January 2008 it has been possible to use the European transfer to effect payments anywhere in the SEPA area. The banking sector set the launch date for the European direct debit at European level : it will coincide with the date on which the payment services directive has to be transposed into national law, namely 1 November 2009. The success of the launch of the European direct debit on that date will depend mainly on a number of legal aspects, its adoption by the market, and the time taken to implement it in banks and businesses. The SEPA Card Framework is ready and has applied since 1 January 2008, but that has had little or no practical impact on the Belgian market in bank cards. Although the original plan for switching to a new payment card scheme in a single operation was abandoned, the Belgian market is technically ready for the introduction of new card payment schemes.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.nbb.be/doc/oc/repec/ecrart/revecoII2009E_H4.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by National Bank of Belgium in its journal Economic Review.

    Volume (Year): (2009)
    Issue (Month): II (June)
    Pages: 69-84

    as in new window
    Handle: RePEc:nbb:ecrart:y:2009:m:june:i:ii:p:69-84

    Contact details of provider:
    Postal: Boulevard de Berlaimont 14, B-1000 Bruxelles
    Phone: (+ 32) (0) 2 221 25 34
    Fax: (+ 32) (0) 2 221 31 62
    Email:
    Web page: http://www.nbb.be/
    More information through EDIRC

    Related research

    Keywords: SEPA (Single European Payment Area); payments instruments; financial integration; Payment Services Directive; banking standards;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbb:ecrart:y:2009:m:june:i:ii:p:69-84. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.