EU Payments Integration: The Tale of SEPA, PSD and Other Milestones Along the Road

307 Pages·2010·1.68 MB·English

by  Ruth Wandhöfer (auth.)

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EU PAYMENTS INTEGRATION
The Tale of SEPA, PSD and Other Milestones Along the Road
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EU Payments Integration
The Tale of SEPA, PSD and Other
Milestones Along the Road
Ruth Wandhöfer
© Ruth Wandhöfer 2010
Foreword © Gertrude Tumpel-Gugerell 2010
Softcover reprint of the hardcoverm 1st edition 2010 978-0-230-24347-7
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First published 2010 by
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ISBN 978-1-349-31839-1 ISBN 978-0-230-31399-6 (eBook)
DOI 10.1057/9780230313996
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Library of Congress Cataloging-in-Publication Data
Wandhöfer, Ruth, 1976–
EU payments integration: the tale of SEPA, PSD and other milestones
along the road/Ruth Wandhöfer.
p. cm. — (Palgrave Macmillan studies in banking and financial
institutions)
ISBN 978-1-349-31839-1 (hardback)
1. Finance—European Union countries. 2. Payment—European Union
countries. 3. Euro area. I. Title.
HG186.A2W35 2010
332.1'78—dc22
2010027570
Contents
List of Tables viii
List of Figures x
Foreword by Gertrude Tumpel-Gugerell xi
About the Author xiv
Acknowledgements xv
Commonly Used Abbreviations and Acronyms xvi
Title I The Opening Act: The Beginning of the End … or
Just the End of the Beginning? 1
(1) Prelude 1
(2) Overture 3
Title II E U Financial Regulation Explained: ‘The Powers
and the Pitfalls’ 5
Introduction 5
(1) Single Market legislation: origins and architecture 6
(2) The institutions, instruments and regulatory
processes 11
(3) EU legislation in action and the Heisenberg
principle 28
Title III S EPA: ‘A New Hope’ 33
Introduction 33
(1) The growing web of payments legislation 33
(2) European banking and payments landscape 40
(3) The Euro as a trigger for further evolution 44
(4) Coping with the Euro introduction: the
Heathrow Group 45
(5) Rattling sabres and a pricing regulation 51
(6) The birth and early years of the EPC 57
(7) A Roadmap emerges 73
v
vi Contents
Title IV P SD – A Parallel Universe to SEPA: The Odyssey
from the First Ideas to the Final Text 77
Introduction 77
(1) A great idea … or rather lots and lots of them 77
(2) From the NLF to the final text 86
(3) A last sanity check against SEPA requirements 115
Title V From Publication to Transposition:
The Directive Dilemma 118
Introduction 118
(1) First reactions from the market 118
(2) The Transposition Working Group and the
PSD Expert Group 120
(3) PSD interpretation: a web of ambiguity emerges 122
(4) PSD national implementation: the Midas touch 128
(5) Industry guidance to help smooth the path 133
(6) Review of related legislation 135
Title VI S EPA From Design to Launch: Finding Your
Way through the SEPA Jungle 142
Introduction 142
(1) SEPA standards, design principles and geography 143
(2) The SEPA schemes: What’s inside? 152
(3) So what benefits can the SEPA schemes
bring to users? 165
(4) The launch of SEPA: reality versus expectation 172
(5) SEPA for cards: pump up the volume 176
(6) Infrastructures in SEPA: a fresh look 182
(7) SEPA for cash update: has the bleeding
stopped yet? 185
Title VII Postlude: The Future for European Payments and
the Emergence of a Global Agenda 187
Introduction 187
(1) PSD: Life after implementation? 187
(2) Je Ne SEPA?: Achievements so far and next steps 197
(3) Completing the picture: the world is watching 221
Contents vii
Epilogue 254
Appendix I: PSD Implementation: Use of Derogations in Titles III
and IV by EU/EEA Member States 256
Appendix II: PSD Implementation: Examples of cases of gold-plating,
non-conforming transposition and other interesting transposition
features at Member State level 275
Notes 279
Index 284
List of Tables
3.1 Summary of credit institutions and branches in key
EU member states as at 2007 41
3.2 Overview of average use of payment types per citizen
across a number of individual EU member states
plus the EU 27 as at 2007 43
3.3 EC Communication 2000/36: Objectives 52
3.4 Convention on Credit Transfers in Euro: Key
features 62
3.5 ICP Convention: Key features 62
3.6 Initial SEPA indicators 65
3.7 Key SEPA milestones presented during the
October 2003 SEPA workshop 66
3.8 The initial EPC recommendations on cards 68
3.9 SEPA for cash: the nine recommendations 69
3.10 The CSM Model 72
3.11 Key Deliverables Requested in the ECB’s Third
Progress Report on Retail Payments 74
4.1 An overview of the 21 Annexes 78
4.2 The PSD’s co-decision timeline 88
4.3 Article 75 of the PSD 112
5.1 List of Member State derogations within the PSD 129
5.2 PSD industry guidance overview 133
5.3 Article 3 of Directive 2009/111/EC 141
6.1 Summary of the Finnish SCT migration plan 174
6.2 SCF-compliant options 178
6.3 SEPA scheme compliant CSMs and PE-ACH
providers 184
7.1 Examples of practical issues experienced since
PSD went live 188
viii
List of Tables ix
7.2 EU payments harmonisation: the four forces
of change 222
7.3 List of African regional cooperations 228
7.4 Membership of the African regional cooperation
groupings 230