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Nikita Veremeev
13.05.2021 | 6 min read
Updated: 15.10.2026
The abbreviation of SEPA means the single euro payment area. It was created by the EU in order to harmonize the transfer process of cashless payments among euro countries. The SEPA architecture was designed as a convenient tool for European consumers, businesses, and government agents while making direct debit or credit payments. Besides, the SEPA payment schemes are developed and administered by the European Payments Council (EPC), an association of payment service providers, not by the European Commission.
History of SEPA
It was the year 1999 when the story of SEPA began. At that time the banking industry already considered a need of having a single payments area since it would lead to further integration of EU economies. Yet only in 2007, the EU passed the Payment Services Directive that offered the legal basis for SEPA. As the SEPA architecture was progressing, SEPA credit transfers and direct debits replaced national euro schemes in 2014 in the euro area and in 2016 in the rest of the EU. In 2017 SEPA allowed banks to transfer 15000 euros in a record time of ten seconds.
In 2018, the European Commission proposed stopping the extra charges for cross-border euro payments in EU member states outside the euro area. In addition, the proposal contains the rule that everyone in the EU can transfer euros for the same price as with their domestic transfer. Also, the new condition came: consumers must be informed about the cost of a currency conversion before paying abroad.
SEPA’s members and goals
The main goal of this system is to make foreign electronic payments as cheap and smooth as internal transfers. Moreover, the single euro payments area brings competition to the industry of payments: it creates a single market and brings the prices down. SEPA covers almost all of Europe, so the same payment rules apply to hundreds of millions of people. As of 2026, the area includes 41 countries. Besides the 27 EU member states, these are Iceland, Liechtenstein, Norway, Albania, Andorra, Moldova, Monaco, Montenegro, North Macedonia, San Marino, Serbia, Switzerland, the United Kingdom and Vatican City.
SEPA has no single managing regulator: the European Payments Council manages the payment schemes. The European Central Bank chairs the Euro Retail Payments Board, which brings together payment providers, consumers, retailers and public administrations; the European Commission attends it as an observer.
Are you looking for a SEPA solution for your financial company? Do not hesitate to contact the COREDO office to get more details.