Indicators

Migration of credit transfers

Euro area

The chart (red line) shows the share of SEPA credit transfers (SCT) in the inter-bank domain as a percentage of the total volume of credit transfers (CT) - that is credit transfers in the "old" as well as in SEPA format.

The higher the value of the indicator, the higher the usage of the newly introduced SEPA product. A figure of 100% would indicate that only SEPA products are used and have fully replaced the non-SEPA instruments.

The bars in the chart above indicate the total number of SCT transactions processed by the infrastructures located in the euro area. The figures are not seasonally adjusted.

The figures are based on aggregated data from the following clearing and settlement infrastructures/systems located in the euro area: ACH Finland, CEC, RPS, Dias, Iberpay, SIT/CORE, BI-COMP, JCCTransfer, Equens, Step.at, SIBS, Bankart, Euro SIPS, ESTA, STEP2 and CS.A.

Transactions sent for example via links between infrastructures have been excluded to avoid double-counting. The results also exclude "on-us" transactions (credit transfers between accounts at the same bank), as well as transactions cleared between banks bilaterally or via correspondent banking.

The results are monthly figures. However, as the SEPA Credit Transfer scheme was launched on 28 January 2008, the first result 02-2008* refers to the period 28 January to 29 February 2008.

At national level

The indicators present the share of SEPA Credit Transfer (SCT) transactions as a percentage of the total volume of all credit transfer transactions initiated in a country (i.e. credit transfer in the legacy format as well as SCTs). They assess the situation in all euro area countries and some non-euro area EU countries (euro transactions only). The indicators are compiled semi-annually by the NCBs and the first set of results refers to the first half of 2008.

The methodology applied to collect the data and to compile the indicators was defined in a way which would lead to reliable figures and facilitate comparisons across countries. In particular, the indicators had to cover a significant level of credit transfer transactions initiated in a country (around 80%). Given that clearing and settlement practices differ across countries, the national SCT indicators were compiled from data on transactions processed by the clearing and settlement mechanisms (CSMs), bilateral clearing of transactions between two credit institutions, correspondent banking, as well as the processing of so-called "on-us" transactions, i.e. transactions between accounts at the same bank.

Migration of direct debits

The chart (red line) shows the share of SEPA direct debits (SDD) in the interbank domain as a percentage of the total volume of direct debits (DD), i.e. direct debits in the “old” as well as in the SEPA format. SDD transactions can already be offered by a large number of banks from all over SEPA. Since November 2010, euro area banks have to ensure reachability of their customers’ accounts for SDD transactions, if they are reachable for a national direct debit transaction denominated in euro (required by the Regulation 924/2009 on cross-border payments in the Community). The same applies for banks in non-euro area countries at the latest in 2014.

The higher the value of the indicator, the higher the usage of the newly introduced SEPA product. A figure of 100% would indicate that only SEPA products are used and have fully replaced the non-SEPA instruments.

The bars in the chart above indicate the total number of SDD transactions processed by the infrastructures located in the euro area. The figures are not seasonally adjusted.

The figures are based on aggregated data from the following clearing and settlement infrastructures/systems located in the euro area: CEC, RPS, Dias, Iberpay, CORE, ICBPI/BI-COMP, Equens, Step.at, SIBS, Bankart, Euro SIPS, ESTA, STEP2 and CS.A. As such, SDD transactions which are cleared bilaterally or processed within the same institution are excluded from this indicator.

Migration of card payments

Several initiatives are under way with a view to creating an additional European card scheme within SEPA. However, existing card schemes (both domestic and international) can also become SEPA-compliant ( Compliance with SEPA). Thus, cards are different from credit transfers and direct debits, for which the new European schemes will gradually replace the existing domestic schemes. This also means that the SEPA card indicators cannot directly monitor migration to the new SEPA payment instrument and will instead have to monitor related aspects such as migration to the EMV specifications (i.e. the standard ensuring interoperability between the chips on cards and point-of-sale terminals or ATMs).

SEPA card indicators: EMV migration

It has been decided that, in order to be SEPA-compliant, card schemes must apply the EMV specifications and must require the use of PIN codes. Although it began prior to SEPA, migration to EMV can still be seen as an important indicator in the sense that non-EMV cards, POS terminals, ATMs and transactions are, by definition, not SEPA-compliant.

Indicators of EMV migration for cards, ATMs and POS terminals

These indicators are compiled on the basis of quarterly data collected by the EPC.

Indicator of the percentage of EMV transactions at POS terminals

The Eurosystem has also developed a SEPA card indicator for migration to EMV at transaction level. An “EMV transaction” is understood to be a card payment transaction in which the following criteria are satisfied: an EMV-compliant card is used at an EMV-compliant terminal and EMV technology is used in the processing of the transaction. The indicator is calculated as the number of EMV transactions at POS terminals divided by the total number of transactions at POS terminals (irrespective of the country of issuance of the card). The indicator is affected slightly by transactions conducted using cards issued outside the SEPA area. If the card is issued in a country outside SEPA that have already been migrated to EMV then the figures are positively affected. On the other hand if the card is issued in a country outside SEPA where the EMV is not implemented then the indicator is negatively affected.

For this indicator, the Eurosystem cooperates with card-acquiring processors – i.e. entities that, acting on behalf of the acquirer, are responsible for the processing of card payment transactions from their acceptance at the point of sale to their delivery at the routing centre ("switch"). The following processors are currently participating in the exercise: Atos Worldline, Bankart, CECA, CETREL, B+S Card Service, BCB Processing, ConCardis, TeleCash, NETS Estonia, Deutsche BP, Deutsche Postbank, Equens, First Data, Intercard, Intesa Sanpaolo Card, JCC Payment Systems, Montrada, WorldPay, Redes y Procesos, SERMEPA, SIBS, UNICRE, CGD and BCP. In the case of France, the absence of a French processor has been corrected for on the basis of figures provided by the Banque de France. The data provided by the above mentioned processors, together with the figures from Banque de France, cover around 70% of POS transactions in the euro area. The processors report biannually, but the results take the form of monthly figures. The expectation is that this transaction-level indicator will continue to gradually increase.

SEPA card indicators: Cross-border use of cards

A second angle when looking at SEPA migration for cards concerns cardholders’ actual use of their cards when travelling abroad. That use depends on three things: first, the technical capabilities of the card and the terminal; second, the merchant’s acceptance of the card in question; and third, the extent to which people do indeed have a uniform “customer experience” across the SEPA area. This indicator is calculated as the number of POS transactions conducted using cards issued outside the country divided by the total number of POS transactions. The indicator is affected slightly (in a positive aspect) by transactions conducted using cards issued outside the SEPA area.

Data are collected from the same card-acquiring processors that report on EMV transactions as a percentage of transactions at POS terminals. They report biannually, but the results take the form of monthly figures. It was expected that relatively low levels (1-2%) would be seen at the outset in January 2008, and that marginal growth would be observed in the years that followed. A move to a significantly higher level would indicate that SEPA had been successful in changing the card industry, the card acceptance practices of merchants and/or the payment behaviour of cardholders.

Cross-border transactions accounted for around 3.5% of POS transactions in the euro area at the beginning of 2008. The indicator shows higher values during the period from July to September each year. This might be a result of summer holidays, as more people travel during the summer months. At the end of 2011, there were around 6.2% cross-border POS transactions.