"I am pleased the European Parliament has this morning approved a proposal that allows non SEPA compliant payments to continue for a limited period of time, until 1 August 2014, in parallel with SEPA compliant payments. This ensures the continued smooth processing of payments for consumers and businesses.
The migration to SEPA credit transfers and SEPA direct debits is an important milestone in the completion of a European integrated payments market. It has many benefits as it makes all electronic payments across the euro area as easy as domestic payments. It means all of us can make fast and secure transfers between bank accounts anywhere in the euro area.
However, in light of recent statistics showing that a substantial number of market participants and particularly SMEs would not have fully migrated to this new common standard by 1 February, the Commission put forward a proposal last month to grant a transition period of six months until 1 August 2014 during which banks and other payment service providers would be able to continue processing payment orders even if users did not provide them in the SEPA format. The proposal does not change the formal deadline for migration of 1 February 2014.
The objective is to ensure payments are not blocked in cases where stakeholders are not ready, and thus minimise any possible risk of disruption to payments for consumers and businesses, in particular SMEs. Payment service users can thus be certain that their payments will continue to be processed, and those who have not yet migrated have the time to do so. The proposal will apply with retroactive effect.
As I said when I made the proposal last month, I call once more on Member States to fully assume their responsibilities and accelerate and intensify efforts to migrate to SEPA so that all can enjoy its benefits, that is, faster and cheaper payments across Europe. The transition period will not be extended after 1 August."
Full statement
EP press release: SEPA-Why it pays to allow more time for new payment standards
© European Commission
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