1 January 2008 marks the start of the Single Euro Payments Area (SEPA). The current impetus among corporates to control risks and reduce costs has led to a greater centralisation of cash management structures and SEPA will accelerate this trend. There are changes that corporates need to make immediately in preparation for the SEPA live date. Although SEPA has many advantages, there are also some drawbacks. It is limited from a geographical perspective, as it does not cover the whole of Europe, or incorporate all its currencies. And it is limited from a technological perspective, as it does not support all payments instruments or deal with corporate-to-bank connectivity, which is a critical issue in the payments world.
