Sandra N.

Marketing Assistant
April 25, 2019

SEPA Credit Transfer - your key to reaching European customers

What is FinTech and why the world needs it

All businesses who operate in Europe are looking for a safe, reliable and cost-efficient way to perform financial transactions. With so many different payment options and schemes, it is important to get familiar with the most popular ones. This is crucial in order to stay competitive and offer the right payment solution to fit the consumers’ needs.

SEPA Credit Transfer is one of the most popular payment schemes in Europe. It connects more than 520 million users in one payment network. The majority of credit transfers in Euro (more than 19 billion per year) are based on this payment scheme.

What is SEPA Credit Transfer?

Before explaining what SEPA Credit Transfer is, we need to clarify what is SEPA. SEPA stands for Single Euro Payments Area. This is an area of 52 European countries and territories, created by the Europan Payments Council (EPC). The purpose of creating this area is payments harmonization by using the same currency (Euro) and the same payment schemes.

Today, the SEPA area consists of more than 520 million consumers. It provides an immense opportunity for all online merchants regarding market expansion and traffic conversion.

SEPA Credit Transfer is a payment scheme created with one idea and one mission: to harmonize payments within the SEPA area. This is an automated payment scheme for performing credit transfers in a safe and secure way.

This payment scheme enables companies to initiate and receive credit transfers, using pre-defined rules and standardized transaction format. This results in increased efficiency, better liquidity, and lower transaction costs.

How does it work?

The transaction flow of SEPA Credit Transfer is simple and reliable, leaving less space for fraudulent activities. The information flows between banks, securing the data and the transaction itself.

The transactions between two different SEPA countries are treated as they are being performed within the same country. This results in increased efficiency and convenience, and faster transactions.

What’s great is that only a consumer’s IBAN is needed in order to initiate the transaction. The payment has to be in Euro and it has to be sent to the bank in one of the participating SEPA countries. The transactions are processed within one business day. This significantly reduces the processing time and makes the payments more convenient.

Use cases

SEPA Credit Transfer payment scheme has found its use in different aspects of the payments landscape. In the business-to-business area, it can be used to overcome the limitations set on cash or card transactions. They are convenient for making high-value transactions between companies. Also, SEPA Credit Transfers can be utilized for payments of taxes, or similar imposts.

Besides this, there are numerous ways merchants can utilize the benefits of SEPA Credit Transfer in order to boost their online business.

SEPA Credit Transfers enable the opportunity to easily payout almost anyone in Europe, regardless of the business location. This opens an enormous opportunity for all business operating in Europe.

According to business needs, payouts can be sent to acquirers, affiliates, suppliers or associates. Through a seamless payout solution, merchants can significantly reduce their costs. Also, the time needed to perform the transactions is reduced too.

Through batch upload, merchants are able to reach hundreds or even thousands of associates with one click. They can create a single file including multiple payments to be executed through a single upload.

To conclude, SEPA Credit Transfer is a perfect solution for all merchants operating in Europe, no matter where they are located. It provides a possibility to reach more than 520 million European consumers, through a single payment scheme. The transactions are a safe, reliable and cost-effective way to perform payouts, with batch upload possibilities. This is the reason that all merchants operating in Europe can gain numerous benefits by utilizing this payment scheme.