Latest SEPA Articles
The harmonisation of payments offers great potential for achieving more efficiency, better data security and significant cost reductions. This was the reason not only for the recent introduction of standardised single euro payments area (SEPA) payment formats across Europe, but also provided the rationale for Switzerland to harmonise its many different national payment formats.
The international payments space is dynamic, with new developments in global liquidity management. With different countries and jurisdictions moving at differing paces, treasurers need to be alert to regional differences.
Centralisation of payments and collections, and simplification of bank account structures, have been amongst treasurers’ and finance managers’ objectives for many years. The challenges have often proved insurmountable - but that is changing.
The pressure to be compliant with the single euro payments area (SEPA) end date, originally 1 February 2014 before a six-month extension was granted, led many banks to adopt tactical rather than strategic solutions. Despite the addition of an extra transition period to bring credit transfers and direct debit payments into the SEPA format, some banks are still adopting a compliance-only approach.