Single Euro Payments Area (SEPA) What does it mean for SMEs? Marieke van Berkel, Head of Department Payments and Securities, EACB Niklas Bartelt, Head of Product Management Operations & Services, DZ Bank AG European Association of Co-operative Banks Groupement Européen des Banques Coopératives Europäische Vereinigung der Genossenschaftsbanken

European Association of Co-operative Banks (EACB): 2 Agenda  SEPA overview (EACB)  Background  What is SEPA  Stakeholders  Potential benefits for SMEs (DZ Bank)

European Association of Co-operative Banks (EACB): 3 SEPA - background  Political objective of “internal market” Introduction of the Euro – single market for “physical” payments Need to create a single market for “electronic” payments  Interbank rules and standards – SEPA  Legal framework – Payment Services Directive

European Association of Co-operative Banks (EACB): 4 What is SEPA  Response of the banking industry to “internal market” objectives Roadmap for SEPA 2004 Interbank standards and rules for payments  in Euro’s  for core and basic services  Based on straight through processing  Executed between customer accounts in SEPA Focusing primarily on  Credit transfers  SEPA Credit Transfer (SCT)  Direct Debits  SEPA Direct Debit (SDD)  Payments by Card  SEPA Card Framework (SCF)

European Association of Co-operative Banks (EACB): 5 What is SEPA  Geographical perimeter the 27 EU Member States Iceland, Liechtenstein, Norway (EEA) Switzerland (EFTA)  but with priority for implementation in the Euro zone

European Association of Co-operative Banks (EACB): 6 What is SEPA  Legal perimeter – Payment Service Directive (PSD) PSD ≠ SEPA Overhauls existing legal framework “harmonises” rights and obligations of users of payments instruments Introduces “payment institutions” Complements the SEPA programme  Publication in Official Journal imminent. Ultimate transposition date : November 2009!  Will apply to payments in euro and EU currencies in EU MS

European Association of Co-operative Banks (EACB): 7 What is SEPA  Calendar SEPA Credit Transfer  28 January Payments by Card  as from January 2008 SEPA Direct Debit  align with PSD Migration  under discussion

European Association of Co-operative Banks (EACB): 8 Stakeholders  Banking sector - SEPA programme European Payments Council  European Commission – legal framework Payment Services Directive “monitor”  European Central Bank “monitor” and stimulator Supervisor  Users, service providers

European Association of Co-operative Banks (EACB): 9 Stakeholders  Dialogue with users and other stakeholders At European level  EPC/European banking associations versus user associations  More and more structured  stakeholder forum 2007  Consumer organisations  Merchants (invited)  SMEs  Corporate treasurers  Public administrations (invited) At national level  National banking associations versus national user associations

European Association of Co-operative Banks (EACB): 10 Useful links  European Payments Council (EPC):  European Central Bank:  European Commission dex_en.htm dex_en.htm