In 2002 most of Europe adopted the Euro currency, which has certainly made life easier in an economic sense. However, this positive advantage has primarily been limited to cash payments,as other methods of payment - such as fund transfers and direct debits, still suffere from the fragmentation of economies that exists in the Eurozone.
Finally though, there is hope through a project started by the executive branch of the European Union and named as SEPA :the Single European Payments Area. SEPA aims to finally unite electronic payments across European countries into one integrated system that cuts across the economic differences of the EU member countries.
Currently, electronic payments - many of which are done online - suffer many difficulties. With the implementation of SEPA, the cashless transactions will now become very straightforward, as was initially intended. Delays, confusion and mistakes will all be reduced to an absolute minimium, with all bottlenecks and barriers finally removed.
With SEPA, it is hoped that a person in Paris who intends to pay for a book he ordered online from Munich will have an easy time in the same way that it would be if he bought the book himself in a bookstore in Paris and paid for it in cash. In essence, SEPA promises a trouble-free and convenient payment system for the millions of retail transactions done electronically all over Europe everyday.
When fully operational SEPA will be implemented in all countries in the euro zone. These are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Non-euro countries belonging to the European Union have likewise opted to be a part of SEPA including Iceland, Liechtenstein, Norway and Switzerland.
In addition to the added convenience, SEPA aims to give a shot in the arm to Europe’s competitiveness and help the economies of those countries involved. The unification of the payments system will remove many barriers and open up many new opportunities.
As an example, the banking industry will have to increase it’s operations to fully implement the requirements of SEPA, with improved technical infrastructure and customer services.
The likelihood that new types of companies and services could evolve with the new system is not a far-fetched idea. Come 2010, when SEPA is expected to have finally taken strong root in Europe’s economy, a whole new way of doing business online is expected to take shape.
Thechange to euro has undoubtedly strengthened Europe’s economy and when fully realized, SEPA will further enhance this newly gained market confidence and promote better business relations within Europe and beyond.