SEPA Solutions for Payment Institutions

The first step is certainly to take stock of the existing system (costs, strengths, weaknesses, market position). This is then contrasted with a possible new system. Of course, possible new functions and their impact on the market position must also be assessed when weighing up the options.

There is no "one SEPA Clearing", rather the SEPA system consists of different components (services) with different communication channels (e.g. EBICS). Access to the TARGET system requires an IT infrastructure with costs of around €120,000 per year. Further costs are incurred, for example, for software systems that can handle the relevant message formats, as well as costs for the certification of the services used.

With the SEPA Clearer, the Bundesbank operates the most cost-effective subsystem for clearing SCT and SDD payments. Communication can take place with SWIFT FileAct or via EBICS. Liquidity management takes place via the TARGET system.

First and foremost, it is important to utilise the features of the respective clearing system in order to save costs and avoid losing time in the payment process. Possibilities to combine payment methods (SCT Inst transactions for new customers, SDD for regular customers) should be examined. Extended options such as issuing IBANs can also be interesting (see article on virtual IBAN).