1. Payment Systems
  2. Single Euro Payments Area (SEPA)

Single Euro Payments Area (SEPA)


The implementation of the Single Euro Payments Area (SEPA) is aimed at expanding the process of European integration so as to include the field of retail payments in euro by putting in place a single European market for euro payment instruments.

SEPA covers a geographical area comprising the 27 EU Member States as well as Iceland, Liechtenstein, Norway and Switzerland. Across this region, all euro payments, including cross-border ones, will be treated as domestic payments (and the current differentiation between national and cross-border payments will disappear).

The introduction of SEPA is meant to ensure an adequate level of efficiency and competition on all markets, capable of fostering important economies of scale and secure high competitiveness to the European economy.

With the aim to bring the desired transparency to the market during the migration phase of the infrastructure providers to the new SEPA standards, the Eurosystem published a set of four compliance criteria, namely the terms of reference for the SEPA-compliance of infrastructures.

SEPA is being achieved through:

  • adoption of a single set of payment instruments for euro payments (credit transfers, direct debits and card payments);
  • implementation of efficient processing infrastructures for euro payments (referred to as settlement and clearing mechanisms);
  • adoption of common technical standards;
  • adoption of common business practices;
  • creation of a harmonised legal basis for payment services (including transposition of the new Directive on payment services in the internal market - Payment Services Directive - into the Romanian legislation);
  • further development of new customer-oriented services.

The SEPA project is carried out by the European banking sector and co-ordinated by the European Payments Council, being underpinned and promoted by the European Central Bank and the European Commission.

The European Central Bank and the European Commission share a common vision for the SEPA and constantly monitor and support the process leading to its realisation. For more information see the joint press release issued on 4 May 2006.

The European Payments Council (EPC) was established in June 2002 as a co-ordination and decision-making body of the European banking sector in the field of payments. Its goal is to underpin and promote the creation of SEPA.

The timeline of SEPA project is planned around two landmark dates, namely:

  • 28 January 2008 launch of the SEPA credit transfer payment instrument, which is due for being used in most euro payments by end-2010; and
  • end-December 2010 - the date by which payment infrastructures must ensure reachability of all euro area credit institutions.

At national level, the project for SEPA implementation is co-ordinated by the Romanian Banking Association, a body representing the national banking community within the European Payments Council.

In Romania, the SEPA project is carried out in accordance with the provisions set out in the National SEPA Implementation and Migration Plan. This plan encompasses the strategy adopted by the local community for the implementation of SEPA and the migration towards the use of the new payment instruments (the organisation of SEPA project at national level, the components related to project planning, organisation and management, as well as the commitments and cut-off dates assumed by all stakeholders in order to complete the migration).

The last version (v2.01) of the National SEPA implementation and migration plan was finalized and approved by the National SEPA Committee in March 2009 and the official document is currently published on the European Central Bank's website.

The governance structure of SEPA project at national level is the following:

  • SEPA National Committee, a decision-making body having responsibilities in drafting the strategy of SEPA and co-ordinating its implementation across the entire local community. It was established in March 2008 with the participation of the Romanian Banking Association, the Ministry of Public Finances and TRANSFOND. The committee is responsible inter alia for the approval of the SEPA National Implementation and Migration Plan;
  • SEPA Commission, established at the level of the Romanian Banking Association in March 2007, in charge of organising debates on the issues pertaining to the manner of implementing SEPA at national level;
  • SEPA project team, founded under the auspices of the Romanian Banking Association, with a structure similar to that of the European Payments Council, responsible for the roll-out of SEPA project at national level and, most notably, for drafting the SEPA National Implementation and Migration Plan.

Moreover, the Romanian Banking Association has begun setting-up SEPA National Forum, an advisory body comprising representative associations of all SEPA stakeholders (companies, small- and medium-sized enterprises, large merchants, utility providers, consumers, etc.).

The NBR should act as a catalyst for private sector activities in the field of low-value payment systems and therefore support the implementation of SEPA in Romania by participating as an observer in the activities of SEPA Commission and SEPA National Committee.

As for SEPA, the NBR assumed the following tasks:

  • to guide and foster the expectations of Romanian stakeholders regarding SEPA;
  • to co-operate with the public administration which is expected to be among the frontrunners in using SEPA products in Romania;
  • to co-operate with consumers in general so that their expectations be made known to SEPA National Committee;
  • to contribute to the co-ordination of communication efforts at national level; and
  • to monitor the progress in implementing SEPA at national level.