8 April 2013
SEPA traffic lights are not green yet
‘Unacceptable’. There, the word is out. The European Central Bank (ECB) has started using fiercer language to pinpoint the worrisome adoption rate of SEPA Direct Debit (SDD).
According to Banking Technology the ECB is especially concerned that the lack of preparation will damage the reputation of the SEPA scheme: ‘Given the popularity of legacy direct debit payment instrument in certain countries and the challenges associated with the new SDD collection process, the current situation is unacceptable.’ In the recently published Report on the Migration towards the single European Payments Area, the ECB urges regulators and payment service providers to make greater efforts to push the instrument to the market.
The ECB has been publishing quantitative indicators to assess SEPA’s preparedness in the participating countries for several quarters in a row.