The Single Euro Payments Area (SEPA) project focuses on three payment instruments: credit transfers, direct debits and payment cards. The European Payments Council developed a set of principles for SEPA card payments that issuers, acquirers, card schemes, and operators will have to adapt to – the SEPA Cards Framework (SFC). According to the European Payments Council, “The objectives of a SEPA for cards will be achieved through the use of harmonised, interoperable and free standards, which are openly available to all parties within the card payment value chain. The work of the EPC and the Cards Stakeholders Group (CSG) continues to focus on a cards standardisation programme for a better, safer, more cost efficient and functionally richer card services environment, whatever the card product or scheme may be.”
In a recent speech, Benoît CÅ“uré, Member of the Executive Board of the ECB called for the need to for “further progress in the field of SEPA for cards.” The European Central Bank wants to render card transaction across intra-European border more effective as it believes it would boost competition between card schemes, domestic and international, as well as between card processors.
In a previous speech, Benoît CÅ“uré added that “In addition to SEPA credit transfers and direct debits, payment cards and other innovative, mobile and online payment instruments are becoming increasingly important. Therefore, further efforts, going beyond SEPA, are needed. These will require political support to create a fully integrated and competitive European market for retail payments. However, we must be careful to avoid creating a “fortress Europe” by disregarding international developments.”
The Central Bank representative also expressed the need for cooperation when it comes to card fraud. “Regrettably, even though banks have a great interest in reducing card fraud, and the EPC could in theory play a major role, so far it has not engaged thoroughly with this important task,” he lamented.
Additionally, during the speech Coeuré defended that the European Commission’s announcement of new legislation on multilateral interchange fees provides a good opportunity “to seize the vast growth potential for card transactions that still exists in many countries.” He added that, “whereas a cashless society continues to be utopian, a “cash-light” society is certainly within reach.”
