Newsletter 12/2009
Finland transfers to SEPA
 |
The Single Euro Payments Area (SEPA) is a creation of European banks, the European Central Bank and the European Commission. In Finland a start was made on implementing the project in January 2008 with credit transfer services.
After a transitional period that will last until 2010, a single euro payments area will come into effect, taking the place of the present country-based practices, with no differences between domestic and foreign payment. Consumers, companies and corporations will be able to pay and receive payments denominated in euros in the area with the same terms and conditions, rights and obligations.
Transition going well
SEPA has also been providing work for the Federation of Finnish Financial Services, which represents Finnish banks, insurance
“SEPA’s aim is to create uniform practices and standards for basic payment services,” says Piia-Noora Kauppi. (Photo: Nina Dodd)
companies, finance houses, security dealers, mutual funds companies and employers in the financial sector.
“The main emphasis of our operations during this year has been on developing SEPA and putting into effect the changes required by the forthcoming payment services act,” says Piia-Noora Kauppi, the managing director of the Federation.
“If we make an international comparison, Finland is well placed in the transition to SEPA. Large companies and public management have their own plans and timetables have been adhered to as planned. For example, the Social Insurance Institution of Finland and tax authorities are well advanced.”
Benefits visible
SEPA will have the greatest effect on the transmission of transactions between banks, but there will also be changes in national banking and payment processes. SEPA will affect payments made by companies, local government, the wholesale and retail trades, software companies and consumers.
There are 32 countries in the new area: all the EU countries plus Iceland, Norway, Lichtenstein, Monaco and Switzerland. The uniform standards and practices for companies operating internationally will create the scope for handling the payment traffic more efficiently in the euro payments area.
“In the long term the benefits will be seen in pricing as competition and cost savings start to have an effect. Cost saving will come when we can use the same international standards in the entire single euro payments area,” Kauppi states.
Kauppi adds that 2010 will be an important year for the transition to SEPA. During the year the move will be made towards using IBAN (International Bank Account Number), which has been in operation in cross-border payments since the beginning of 2007.
Related links
