The Single Euro Payment Area (SEPA) involves the creation of a zone in which all electronic payments across Europe are considered domestic. There is no difference between national and intra-European cross border payments. SEPA aims to improve the efficiency of cross-border payments, to defragment national payment markets, and to allow customers to make cashless Euro payments by using a single bank account and payment instruments. SEPA consists of all 27 European Union (EU) member states and includes Iceland, Norway, Liechtenstein, Switzerland, and Monaco. The payment schemes and frameworks that are necessary to realize SEPA are defined by the European Payments Council (EPC).

IBM® Financial Transaction Manager for SEPA Services is used to manage, orchestrate, and monitor financial transactions that relate to SEPA payments.

The Single Euro Payment Area (SEPA) involves the creation of a zone in which all electronic payments across Europe are considered domestic. There is no difference between national and intra-European cross border payments. SEPA aims to improve the efficiency of cross-border payments, to defragment national payment markets, and to allow customers to make cashless euro payments by using a single bank account and payment instruments. SEPA consists of all 27 European Union (EU) member states and includes Iceland, Norway, Liechtenstein, Switzerland, and Monaco. The payment schemes and frameworks that are necessary to realize SEPA are defined by the European Payments Council (EPC).

IBM® Financial Transaction Manager for SEPA Services is used to manage, orchestrate, and monitor financial transactions that relate to SEPA payments (Figure 1).


Figure 1. Financial Transaction Manager for SEPA Services


Did you know?

The message formats that are adopted by SEPA are not limited to Europe. The SEPA message formats are based on ISO 20022, and ISO 20022 is also being adopted in China, Singapore, Australia, Egypt, South Africa and other countries worldwide. Significant opportunity is possible for reuse of IBM Financial Transaction Manager for SEPA Services.


Business value

Financial institutions are seeking ways to increase revenue opportunities by providing new services and increasing market share. They are also having to adhere to regulatory requirements for SEPA Credit Transfer (SCT). Many banks initially took a tactical approach for SEPA implementation and now have concerns that these platforms will not scale. These environments are typically complex and have the following characteristics: