The Single Euro Payments Area Regulation (SEPA Regulation) was adopted in 2012 and was intended to create an integrated market for electronic payments in euro that makes no distinction between national and cross-border payments.

The SEPA Regulation imposed 1 February 2014 as an end-date for migration in the euro area. A month before the initial end-date for migration, the end-date was postponed by 6 months until 1 August 2014 to take into account delays in the migration observed in various Member States. This six month delay was sufficient to ensure a smooth transition from legacy credit transfers and direct debits in euro to SEPA credit transfers (SCT) and direct debits (SDD). Member States that do not belong to the euro area had until 31 October 2016 to migrate to SCT and SDD.

The European Commission has now published a report to the European Parliament and to the Council on the application of the SEPA Regulation. The report concludes that, overall, the SEPA Regulation is correctly applied across the EU. There is currently no need for a follow-up legislative proposal. The main issue to be closely observed is the IBAN discrimination by payees (i.e. imposing on payers to pay from an account located in a specific country, which is contrary to Article 9 of the SEPA Regulation).

View European Commission report on SEPA Migration Regulation, 23 November 2017