First services in the Single Euro Payments Area (SEPA) project are available as of Monday in the 27 EU member states, plus Iceland, Liechtenstein, Norway, Switzerland and nine territories under administration of EU countries, in what is seen as the first step towards a more efficient and transparent payments in the EU.
SEPA provides an environment in which individuals, companies and other users of payment services in banks make and accept payments in euros regardless whether the payment is within a single state or between states in SEPA. The project is to be fully running in four years.
As of 28 January, pan-European payment instruments are available for credit transfers, which will be possible between customers with bank accounts. About 80% of the banks in the SEPA area are capable of receiving such credit transfers, among them 21 banks in Slovenia.
Direct debits will be available as of 2009, while payments with smart cards will be possible as of 2011, when cards are to be used in all terminals in SEPA countries.
The system is to reduce costs an facilitate cross-border operations for companies and individuals. The payments from and to abroad are to become safer and simpler.
According to EU finance ministers, SEPA is to benefit everyone, its assets estimated at about EUR 130bn for the following six years. The single payments system is also expected to boost competition and economic growth.
The launch of SEPA was celebrated today at several ceremonies, including one in Ljubljana, which also saw the attendance of Finance Minister Andrej Bajuk.
"This is one of the biggest payment transactions projects in Europe and the world," Bajuk stressed. He added that the payment transaction system in Slovenia would not change, as it was above standard compared to the European system.
The connection to abroad will meanwhile be governed by new, unified standards, which means that all payments within SEPA will be treated as domestic payments, the minister moreover explained.
According to Mihela Zupancic, the head of the European Commission Representation in Slovenia, this is "an important step in making full use of the potential of the internal European market".
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