PAY.ON, a provider of web-based payment infrastructure services, recently integrated P4 Solutions’ SEPA direct-debit payment process into its global payment network, allowing its clients to prepare for implementation before the Feb. 1 deadline.
SEPA, a new payment method valid across Europe, provides payment service providers and their merchants to serve international clients through a simplified, service-oriented procedure. The only prerequisite is a bank account for merchants and customers.
“SEPA offers significant benefits to merchants in Europe and around the world by making their e-commerce more customer-oriented,” PAY.ON CEO Markus Rinderer said. “The potential is enormous if you consider that out of around 500 million people in Europe, only 125 million have a credit card, but they all have a bank account – the only requirement for using SEPA. E-commerce in Europe now has a great opportunity to take cross-border trade into a new era, all thanks to SEPA. PAY.ON has provided its customers with all the tools needed to take the relevant steps for the market in good time.”
The Council of the European Union adopted the SEPA regulation last February. Existing national euro credit transfer and direct debit programs will be replaced by SEPA Credit Transfer and SEPA Direct Debit by the Feb. 1 deadline.
The regulation requires the replacement of euro-area formats not compliant with SEPA. Banks will also no longer be allowed to require the bank identifier code from clients for domestic payments after Feb. 1 and after February 1, 2016, for cross-border payments.