Ground rules for a pioneering scheme designed to make it easier to transfer funds within the Single Euro Payments Area (SEPA) have been published in Brussels. Devised by trade group the European Payments Council (EPC), in partnership with stakeholders, the SEPA Instant Credit Transfer initiative (SCT Inst) is billed as a world first – enabling corporates and smaller businesses to make quick transfers across an area spanning 34 European countries. It will also be open to administrative agencies – for example, public-sector bodies – along with individuals. At present, a typical SEPA credit transfer can take a whole day to complete. The new scheme will ensure that funds can be transferred in less than 10 seconds, at any time of the day or year – including weekends and holidays. Enshrined in a formal EPC rulebook, issued on 30 November, SCT Inst was devised in the wake of a spring consultation with payment service providers (PSPs) and their end users. For the initial phase of the scheme, the maximum value of an eligible transaction will be set at €15,000. However, the EPC confirmed that those key parameters “are not set in stone”. “PSPs willing to increase the amount limit and transaction speed,” it noted, “can bilaterally or multilaterally agree to do so. “The maximum amount will be reviewed annually, as of November 2018, to ensure that it reflects technical evolutions and market needs. In addition, a regular change-management cycle, open to all stakeholders, will be organised.” EPC chair Javier Santamaría said: “The launch of the SCT Inst scheme illustrates that we have entered a new era in payments, based on speed and innovation. “Digital-oriented and available 24/7, 365 days a year, SCT Inst transactions will bring customers convenience and the certainty that money has been moved instantly. The SCT Inst scheme will pave the way for emerging methods of payment, such as person-to-person mobile payments.” He added: “[The] publication of the scheme is only the beginning of this journey towards faster pan-European payments. Now is the time for all stakeholders to get ready to process the first SCT Inst transactions in November 2017. “Together, we will make this scheme a success.”
Check out this video on the SCT Inst scheme from the EPC’s YouTube channel: