The Single Euro Payments Area (SEPA) was launched by the European banking and payments industry with the support of national governments, the European Commission, the Eurosystem, and other public authorities. As SEPA not only harmonized the way non-cash euro payments are conducted, but also completed the introduction of the euro as the single currency, the Eurosystem had a very strong interest in the success of the SEPA project.

SEPA harmonizes the way cashless euro payments are made across Europe. It allows European consumers, businesses and public administrations to make and receive the following types of transactions under the same basic conditions

• credit transfers
• direct debit payments
• card payments

This makes all cross-border electronic payments in euro as easy as domestic payments.

SEPA covers the whole of the EU. It also applies to payments in euros in other European countries: Andorra, Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino and Vatican City State.

The advantages of a single euro payments area include

• a single system for both domestic and cross-border bank transfers
• allowing cross-border transactions by direct debit, that is to charge directly an account in one country for services provided in another country
• allowing people working or studying in another SEPA country to use an existing account in their home country to receive their salary or pay bills in the new country
• ensuring cheaper, safer and faster cross-border payments and more transparent pricing thanks to the single set of payment schemes and standards