The single European payments area (Sepa)went live this weekwith the European
Commission predicting potential savings of £268bn over the next six
years, as well as challenges for banks.
The system, which will make all electronic payments in the
Eurozone the
same as making domestic payments, was launched for credit
transfers.
A combination of payments-market harmonisation and
e-invoicing could lead to massive savings, according to a
European Commission (EC) study into costs.
"Potential benefits from Sepa in payments markets alone could
exceed £91bn over the next six years, and a further £177bn if Sepa
can be used as a platform for electronic invoicing," said the
EC.
Although the UK does not use the euro, businesses with a
presence in the Eurozone will need to change their processing
systems if they want to make lower cost Sepa transactions, and UK
banks will need to upgrade systems to support it.