The economic impact of the Single Euro Payments Area

With the realisation of the Single Euro Payments Area (SEPA), there will be no difference in the euro area between national and cross-border retail payments. SEPA is aimed at fostering competition and innovation, and improving conditions for customers. This requires concerted efforts from various stakeholders, in particular the banking industry, to align national practices. The Eurosystem strongly supports the SEPA project. In its catalyst role, the European Central Bank (ECB) closely monitors and assesses the overall development of SEPA. Against this background, the ECB has carried out in cooperation with the banking industry a SEPA impact study with the aim of enriching its understanding of the potential economic consequences of SEPA. Based on the quantitative and qualitative expectations of major pan-European banks, the study finds that the overall financial impact for the banking industry varies according to different scenarios of the SEPA project. The coexistence of national and SEPA retail payment schemes is expected to lead to initial investments borne by the banks. In the longer term, banks expect to benefit from improved cost efficiency and economies of scale and scope. Furthermore, banks are expected to face downward pressure on their revenues as competition will increase across borders and as a result of new market entrants. The findings of the study confirm the view that a dual SEPA implementation phase should be as short as possible. In fact, a longer migration period would give rise to higher costs than a shorter period. It can furthermore be concluded that those institutions that embrace new technological developments, create new businesses and provide innovative services are likely to gain most from SEPA. JEL Classification: G21, L11, L22.SEPA, European integration, payment systems.

The Single Euro Payments Area

The objective of the pan-European regulatory and self-regulatory work related to the creation of the Single Euro Payments Area (SEPA) is to improve the efficiency of low-value payments (i.e. retail payments) by establishing a common legal framework and the application of standards. Among the elements of the SEPA project, our focus will be on schemes, in particular the SEPA Credit Transfer Scheme (SCT) already essentially implemented in the EU and Hungary, which we will discuss in detail, stressing the fact that SEPA is not a concrete payments system, but rather a set of procedural and legal rules regulating payment methods, in addition to the entire infrastructure supporting the clearing and settlement of transactions. In the longer term, the broad implementation of the schemes can potentially lead to a substantial reduction in costs for banks, which may ultimately be passed on to customers. We will present the practical experience gained in connection with the Credit Transfer Scheme, in light of the information compiled in the course of the central bank’s informative meetings conducted at the affected Hungarian banks. Currently, 12 banks now apply the Credit Transfer Scheme in Hungary. Due to the lack of a domestic euro infrastructure, domestic euro payments are carried out through international channels. Consequently, a much larger portion of euro transfers made by Hungarian banks have already shifted to the new SEPA format than what has been characteristic of retail payments within the euro area thus far. This phenomenon stems from the fact that initially, the SEPA Credit Transfer Scheme offered a competitive alternative most simply from the perspective of cross-border transaction fees.SEPA, SEPA payment schemes, SEPA payment methods, SEPA Credit Transfer Scheme, Payment Services Directive, PSD.

Integrating European retail payment systems: some economics of SEPA

Using a spatial competition model of retail payment networks, this paper discusses the likely economic consequences associated with the formation of the Single Euro Payments Area (SEPA). The model considers an expansion of positive network externalities on the demand side and adjustment cost on the supply side and reveals that the introduction of SEPA may not lead to a fully competitive and integrated retail payment markets. This is especially the case when the markets are segments before the introduction of SEPA. In such a scenario, the post-integrated markets are likely to remain segmented or will be characterised by a kinked equilibrium where no significant price competition takes place. In both outcomes, SEPA leads to increased prices, larger network sizes (ie increased number of customers) and a higher consumer surplus. Additionally, if the SEPA-induced adjustment costs for payment networks are not prohibitively high, SEPA may also lead to an increase in both profits and social welfare.integration; network effects; retail payments

An Economic Analysis of the Single Euro Payments Area (SEPA)

Under which conditions is it advantageous for countries to form a single payments area? This question is analyzed in a model of spatial bank competition to understand better the economic foundations of the Single Euro Payments Area (SEPA). An economic research perspective on the mostly informal policy debates about SEPA is developed. The analysis suggests that expectations about the positive effects of SEPA may be exaggerated as most channels for enhancing public welfare seem rather weak. Still the project may be worthwhile undertaking if the cost of creating SEPA-compliant systems is reduced by extending the time frame for the implementation phase and if the use of electronic payments is promoted.SEPA, Optimum Payments Areas, Payment System, Payment Area

The Belgian migration to SEPA (Single Euro Payments Area)

The main aim of SEPA (Single European Payment Area) is to promote financial integration in Europe, more particularly in the field of cashless payment services and payment systems. It is intended to enable all economic players (businesses, consumers and public authorities) to effect payments anywhere in the SEPA zone (the 27 EU countries plus Iceland, Liechtenstein, Norway and Switzerland) as easily, securely and efficiently as domestic payments. It must also be possible to execute these payments in accordance with a single regulatory framework within which all players have the same rights and obligations. To that end, the European Parliament and the Council adopted a directive on payment services in the internal market, which has to be transposed into national law by 1 November 2009. The SEPA migration is a process whereby the current national payment instruments are gradually replaced by standardised European instruments. More precisely, European instruments have been developed for credit transfers and direct debits, while a general framework has been set up for payment cards. The development of standards for these payment instruments and the organisation of the migration to SEPA were largely decided by the banking sector. For that purpose, interbank consultation bodies were set up at national and European level, and special structures were created to encourage societal dialogue concerning SEPA and its implementation. In Belgium, the organisational structures behind the SEPA migration are the “Steering Committee on the future of means of payment” and the SEPA interbank Forum. SEPA is being created in phases. The signal for the operational launch was given just over a year ago : since 28 January 2008 it has been possible to use the European transfer to effect payments anywhere in the SEPA area. The banking sector set the launch date for the European direct debit at European level : it will coincide with the date on which the payment services directive has to be transposed into national law, namely 1 November 2009. The success of the launch of the European direct debit on that date will depend mainly on a number of legal aspects, its adoption by the market, and the time taken to implement it in banks and businesses. The SEPA Card Framework is ready and has applied since 1 January 2008, but that has had little or no practical impact on the Belgian market in bank cards. Although the original plan for switching to a new payment card scheme in a single operation was abandoned, the Belgian market is technically ready for the introduction of new card payment schemes.SEPA (Single European Payment Area), payments instruments, financial integration, Payment Services Directive, banking standards

AN ANALYSIS OF THE SEPA CARDS FRAMEWORK (SINGLE EURO PAYMENTS AREA) ADOPTION IN ROMANIA

The study examines the actual status and the future application of Single Euro Payments Area SEPA Cards Framework, based on Romanian experience. The paper highlights the fact that there is no national card scheme in Romania and that the local cards marketSingle Euro Payments Area (SEPA) Cards Framework SCF, National card scheme, Challenges of the SCF implementation in Romania

Death by SEPA: Substantive Denials Under Washington\u27s State Environmental Policy Act

This Comment seeks to answer the question raised by West Main II and Cougar Mountain of what procedural processes and substantive policies may be used in SEPA-based denials. After examining the nature of substantive SEPA authority and the relationship between substantive SEPA and Washington\u27s vested rights doctrine, the Comment will discuss West Main II and Cougar Mountain and will argue that the two cases are consistent. It will then provide an informative assessment of the current limits of substantive SEPA authority. The Comment concludes by suggesting the following legislative or judicial changes in SEPA law: earlier vesting of SEPA policies, greater incorporation of environmental concerns into regulatory codes, and restrictions on the content of agency SEPA policies. These changes would create more certainty for property owners, but at the same time, would retain sufficient flexibility for local governments using SEPA to control the environmental impacts of land use decisions

Functional Characterization and Localization of the \u3ci\u3eAspergillus nidulan\u3c/i\u3e Formin SEPA

Formins are a family of multidomain scaffold proteins involved in actin-dependent morphogenetic events. In Aspergillus nidulans, the formin SEPA participates in two actin-mediated processes, septum formation and polarized growth. In this study, we use a new null mutant to demonstrate that SEPA is required for the formation of actin rings at septation sites. In addition, we find that a functional SEPA::GFP fusion protein localizes simultaneously to septation sites and hyphal tips, and that SEPA colocalizes with actin at each site. Using live imaging, we show that SEPA localization at septation sites and hyphal tips is dynamic. Notably, at septation sites, SEPA forms a ring that constricts as the septum is deposited. Moreover, we demonstrate that actin filaments are required to maintain the proper localization pattern of SEPA, and that the amino-terminal half of SEPA is sufficient for localization at septation sites and hyphal tips. In contrast, only localization at septation sites is affected by loss of the sepH gene product. We propose that specific morphological cues activate common molecular pathways to direct SEPA localization to the appropriate morphogenetic site

Death by SEPA: Substantive Denials Under Washington\u27s State Environmental Policy Act

This Comment seeks to answer the question raised by West Main II and Cougar Mountain of what procedural processes and substantive policies may be used in SEPA-based denials. After examining the nature of substantive SEPA authority and the relationship between substantive SEPA and Washington\u27s vested rights doctrine, the Comment will discuss West Main II and Cougar Mountain and will argue that the two cases are consistent. It will then provide an informative assessment of the current limits of substantive SEPA authority. The Comment concludes by suggesting the following legislative or judicial changes in SEPA law: earlier vesting of SEPA policies, greater incorporation of environmental concerns into regulatory codes, and restrictions on the content of agency SEPA policies. These changes would create more certainty for property owners, but at the same time, would retain sufficient flexibility for local governments using SEPA to control the environmental impacts of land use decisions

Sepa Api dalam Ritual Katodo Ngagha pada Etnik Pautola Keo Tengah Flores: Sebuah Kajian Semiotik

This study aims to describe the Sepa Api symbol in the Katodo Ngagha Traditional Ritual of the Patola ethnic, Keo Tengah, Flores. Sepa Api semiotics describes the symbols and meanings contained in Sepa Api. The problems in this study are (1) What are the shapes of the sepa fire symbols in the Katodo Ngagha ritual for the Patola, Central Keo, Flores ethnics (2) How are the fire sepa symbols in the Katodo Ngagha ritual for the Patola, Central Keo, Flores ethnicities. 1) To find and describe the fire sepa in the Katodo Ngagha ritual for the Patola ethnic, Keo Tengah, Flores (2) to find and describe the meaning of the fire sepa in the Katodo Ngagha ritual for the Patola ethnic, Keo Tengah, Flores. The approach used in this study is a qualitative descriptive approach. The data were collected using the proficient method, the listening method, and the recording method while the techniques used were interview techniques, note-taking techniques, and documentation techniques. The theory used in this study is the theory of Semiotics. The results of the analysis show that there is a form of the fire sepa symbol in the Katodo Ngagha Ritual of the Patola ethnic, Keo Tengah, Flores which has seven (7) forms and four (4) meanings. Seven (7) semiotic forms of sepa api, namely: (1) sepa api, (2) kae yeast and dambu bhala, (3) poji tolo, (4) lipe, (5) wonda, (6) topo, (7) nggo and longing. The meanings of the symbols or symbols on the fire sepa are: (1) religious meanings, (2) social meanings, (3) power meanings, (4) entertainment meanings