De Nederlandsche Bank
Migration of the Netherlands to the
Single Euro Payments Area
Michiel van Doeveren
Equens-DACT SEPA-training
Utrecht
6 december 2011
De Nederlandsche Bank
Eurosysteem
Johannes Vermeer – The Milkmaid 1658
De Nederlandsche Bank
Eurosysteem
Agenda
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Backround of SEPA
SEPA-products
Impact of SEPA
National SEPA Migration Plan
and status of migration
Concluding remarks
De Nederlandsche Bank
Eurosysteem
European Payment Market
EU
End of 2009
NL
EU 17
EU 27
Inhabitants (mio)
16.5
329.1
500.4
GDP (Eur bio)
571.98
8,963.01
11,790.8
Inst. offering payment
services
Payment accounts (mio)
319
6,547
8,700
24.0
372.6
630.9
Transactions (bio)
5.0
57.9
82.1
POS terminals (ths)
340
6,428
8,555
ATM’s (ths)
8.5
322.1
433.7
Cards (mio)
30
478
726
Bron: ECB, Eurostat
De Nederlandsche Bank
Eurosysteem
Payment Trends in the EU
Number of transactions per type of payment intrument (billions)
22
20
18
16
debit and credit cards
14
credit transfers
12
direct debits
10
cheques
8
E-money purchases
6
4
2
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source ECB
De Nederlandsche Bank
Eurosysteem
The euro is the common currency of 17 countries today, but retail payments
are still organised nationally
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De Nederlandsche Bank
€
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Eurosysteem
SEPA means an uniform payments market
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EU
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De Nederlandsche Bank
€
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Eurosysteem
Impact of SEPA
Consumers
 Use
IBAN and BIC
 Use of cards in the whole SEPA area
Firms (private and public)
 Easier
cash-management and administration
 Standard formats (ISO 20022 XML)
 Use of IBAN and BIC
 Centralisation of accounts and direct debits
Retailers
 More
choise: terminal, acceptance of brands, acquiring
Banks
 Change
of markets, new products, new systems
De Nederlandsche Bank
Eurosysteem
Payment chain
debit
credit
payment
instruction
payment
information
bank
bank
clearing
debit
payment
information
credit
payment
instruction
seller
buyer
good/service
De Nederlandsche Bank
Eurosysteem
SEPA Credit Transfer
(in use since 2008)
SEPA Credit Transfer: Standard for bank to
bank credit transfers in euro (mass payments)
 Payments are made for the full original amount
 IBAN and BIC are obliged
 ISO 20022 UNIFI standards (XML-language)
 140 characters of remittance information are
delivered to the beneficiary
 Unstructured or restructured remittance
information as agreed between partners

De Nederlandsche Bank
Eurosysteem
SEPA Direct Debit
(introduced in 2009)
SEPA Direct Debit: Standard for bank to bank
Direct Debits in euro (B2C and B2B)
 Payments are made for the full original amount
 IBAN and BIC are obliged
 ISO 20022 UNIFI standards (XML-language)
 One-off or recurrent
 A mandate is signed by the debtor (e-mandate)
 Pre-notification (mostly 14 calender days in
advance)
 Refunds (PSD: 8 weeks) and returns

De Nederlandsche Bank
Eurosysteem
SEPA Regulation
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•
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End dates:
1 February 2014 uniform end-date national credit transfers and
national direct debits
1 August 2015 niche products SCT and 1 August 2016 niche products
SDD
Conversion facilities IBAN for consumers and XML services for firms
until 1 August 2016
Technical requirements: consumer demands w.r.t. the SDD, white
listing, black listing, maximum size and frequency
No MIF SDD after 2016-2018
Role of Trilogue
European Commission published the draft SEPA-Regulation
on 16 December 2010
De Nederlandsche Bank
Eurosysteem
SEPA for Cards
Vision of the Eurosystem (1)
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The Consumer can choose between different
debit card brands
The Merchant can choose which debit cards
brands he or she accept
The cards market is competitive, reliable and
efficient, as well as for card holders,
merchants as for processing
More aspiration is needed in the SEPA for
cards: need for an additional European debit
card scheme
Further card standardisation is vital
De Nederlandsche Bank
Eurosysteem
SEPA for Cards
Vision of the Eurosystem (2)
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All technical and legal barriers are eliminated
Interchange fees should not be misused to
generate excess revenues for the banking
system, at the costs of merchants and
cardholders
Preference for no MIF-model: see for
example the MasterCard and VISA cases
Ideal situation: ‘Any card at any terminal’
De Nederlandsche Bank
Eurosysteem
Migration to SEPA
Aim: a smooth migration to SEPA
 To organise nationally
 Market driven within the limits of the SEPARegulation
 Speed can differ between countries
 Stakeholders’ involvement and communication are
important tools for success
 Clear end dates

De Nederlandsche Bank
Eurosysteem
1 February: end-date
SCT & SDD migration
Infrastructure
SEPA proof for
mass migration
Specifications
SEPA proof basic
products for
businesses
SCT
2012
Banks
1-10
SDD adapted to
consumer protection
measures regulation
SDD
2013
1-3
1-7
2014
SEPA proof infrastructure
Software suppliers SEPA proof software packages
Support migration end-users
Large-scale enterprises SCT
Early movers
Mass migration
SMEs SCT only
Early movers
Large-scale enterprises all
Early movers
SMEs SCT & SDD
Early movers
Consumers
Growing use of IBAN
Communication
Communication from umbrella organisations, intermediaries, banks
Public campaign
Mass migration
Mass migration
Mass migration
Possible use of niche products after end-date
Support migration end-users
De Nederlandsche Bank
Eurosysteem
Migration status SCT
Transactions processed in SEPA format as % of total transactions
22
20,5
20
21,1
20,5
20,1
19,4
17,8
18
16,9
15,7
16
14,7
13,9
14
12
10,4
10
8,8
9,0
9,6
9,3 9,4
8,1
8
7,5 7,5
6,7
6,2 6,2
6
5,4
3,9
4
2,9 3,1
2
0,5
0
4,5 4,6 4,8
4,2 4,4
2,1
1,7 1,8 1,8 1,9
1,4 1,5
1,2
1,1
0,8 0,9 1,0
De Nederlandsche Bank
Eurosysteem
Jan FebMar Apr May Jun Jul AugSep Oct NovDec Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec Jan Feb Mar Apr May Jun Jul AugSepOct NovDec Jan FebMar Apr May Jun Jul AugSep
2008
2009
2010
2011
Aim of the SEPA Migration
Monitor
Insight into the status of SEPA migration of
corporates, public authorities and software
suppliers
1. Awareness of the meaning and implications of SEPA
2.
3.
4.
Stage of preparations
Actual use of SEPA payment instruments
Development of software packages
De Nederlandsche Bank
Eurosysteem
Results: Awareness users

Large companies, public authorities and a large part of the local
authorities and software companies know what SEPA is.

More than 80% of the SME doesn’t know what SEPA is.

36% of the middle-large companies doesn’t know what SEPA is.
Weet u wat de eenwording van de Europese betaalmarkt inhoudt?
100%
90%
80%
Ja
70%
Ja, maar niet precies
60%
Nee
50%
40%
30%
20%
10%
0%
MKB (n=501)
Middelgrootbedrijf
(n=100)
Grootbedrijf (n=21) Gemeenten (n=141) Publieke instellingen Softwareleveranciers
De Nederlandsche Bank
Eurosysteem
(n=12)
(n=27)
Results: Awareness users

Information needs

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SME:
Middle-large companies:
Large companies:
Local authorities:
Public authorities:

Most often named information sources

SME:
Middle-large companies:
Large companies:
Local authorities:
Public authorities:



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


general information
general information
exact end dates; e-mandates
exact end dates; general information
nowhere, progress introduction in NL
homebank, accountant, DNB
homebank, DNB, government
homebank, DNB, government
homebank, ICT provider, DNB
SPPS, DNB
De Nederlandsche Bank
Eurosysteem
Results SEPA Credit Transfer (SCT)
• A small percentage now only
pays with SCT
• With the local authorities the
situation is hardly changed
since the last monitor.
Fase overgang Europese overschrijving
100%
90%
80%
70%
• With the large companies a
worsening seem to have taken
place.
60%
• A large part of the SMEs is still
far behind, but did progress.
Now 78% has done nothing yet.
20%
50%
40%
30%
10%
0%
MKB
(n=502)
Middelgrootbedrijf Grootbedrijf
(n=100)
(n=21)
Gemeenten Publieke instellingen
(n=141)
(n=12)
Weinig tot niets
Uitzoeken w at er moet gebeuren
Concreet bezig met voorbereiding
De Nederlandsche Bank
Eurosysteem
Ik gebruik Nederlandse en Europese overschrijvingen
Ik gebruik alleen nog Europese overschrijvingen
Results SEPA Direct Debit (SDD)
• With the public authorities and
large companies a worsening
seems to have taken place in
comparison to the last monitor.
Fase overgang Europese incasso
100%
90%
80%
• With the local authorities the
situation hasn’t changed.
70%
60%
50%
• With the middle-large
companies a small
improvement is visible. By now
4% uses the SDD.
40%
30%
20%
10%
0%
• 93% of the SMEs has done
(almost) nothing in preperation.
MKB
(n=232)
Middelgrootbedrijf
(n=60)
Grootbedrijf
(n=19)
Gemeenten Publieke instellingen
(n=119)
(n=8)
Weinig tot niets
Uitzoeken w at er moet gebeuren
Concreet bezig met voorbereiding
De Nederlandsche Bank
Ik gebruik Nederlandse en Europese incasso's
Eurosysteem
Results softwareproviders
Ontwikkeling software
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
nog niets gedaan
bezig met uit te
zoeken wat hiervoor
nodig is
concreet bezig met de bezig met het testen softwarepakketten zijn
ontwikkeling van
van ontwikkelde
klaar
software
software
De Nederlandsche Bank
Europese overschrijving
Europese incasso
Eurosysteem
Concluding Remarks
The success of SEPA depends
on:





An end date for national payment
instruments (SEPA-Regulation)
SEPA for Cards means ‘Any card
at any terminal’. This requires time.
Further European standardisation,
which is not easy
Well organised stakeholder
involvement and consultation
The implementation of the
Netherlands’ SEPA Migration Plan
De Nederlandsche Bank
Eurosysteem
Questions?
De Nederlandsche Bank
Eurosysteem