Single European Payment Area Essay Example | Topics and Well Written Essays - 750 words

Single European Payment Area - Essay Example The Single Euro Payment System an electronic payment system in the euro zone countries. The banking industry in the European Union came up with the idea having the first Single Euro Payment Area products launched in January 2008. The Single Euro Payment Area, simply called SEPA, is an electronic system that eases the electronic payment all across the Euro zone by the use of credit cards, debit cards, bank transfer or direct debit. The electronic system will make it easy for tourist from and within the European Union, access their money as if they are in their domestic country (Anamaria and Ghiba, 2). The Single Euro Payment Area is highly supported by the EC and ECB. This is because of its significance to financial institutions and their client. The European Payment Commission, which represents the European banking industry, the European Central Bank and the European Commission all have a common vision and goals in the execution of the SEPA. The European Payment Commission uses the industry’s self-regulations to improve and promote the Single Euro Payment Area. This is done by defining common positions for core payment services within a competitive market place. The EPC is also accountable for providing strategic guidance for standardization and provide or in some cases formulate the best practices and support while monitoring the implementations of made decisions (Anamaria and Ghiba, 2). The EPC has fabricated new product schemes for direct debts and credit transfers and a structured framework for payment cards. The EPC represent the whole European financial industry as the members are from banking associations and banks from the EU member states. This assures that all the credit institution, regardless of its size, within the European market has a say in the implementation process of SEPA. The European Central Bank played a substantial role in the implementation of