SEPA - The Single Euro Payments Area
The SEPA (Single Euro Payments Area) project is in line with the fiduciary euro (banknotes and coins) as a single currency. It aims at creating a single euro payments area in which all the scriptural payments are considered as domestic, without any distinction between national and cross-border payments.
SEPA aims to provide common payment instruments (i.e. credit transfers, direct debits and payment cards), which are regulated by a harmonised legal framework.
The SEPA payment instruments will enable payments in euro to be performed from a single payment account as easily and under the same conditions as domestic payments, independently of the country of destination within the SEPA area which encompasses 32 countries.
The SEPA project is being implemented by the European banking industry, which is organised under the European Payments Council (EPC). The Eurosystem and the European Commission are the catalysts of this project.
In Luxembourg, the SEPA project is being implemented by the Association des Banques et Banquiers, Luxembourg (ABBL) through a committee, which brings together the representatives of the main credit institutions active in retail banking as well as the representatives of the national supervisory authorities.
The SEPA migration of credit transfers and direct debits was achieved on the 1st August 2014 in the Grand-duchy of Luxembourg and in the Euro area countries.
For more information on SEPA, please refer to the Publications on SEPA