SEPA(Single Euro Payments Area)
A European Union payment integration initiative enabling fast, low-cost euro bank transfers between 36 countries with standardized payment formats.
What is SEPA?
SEPA (Single Euro Payments Area) is a payment integration initiative of the European Union that enables seamless, low-cost euro payments across Europe. Launched in 2008 and fully implemented in 2014, SEPA allows individuals, businesses, and organizations to make and receive euro payments under the same basic conditions, rights, and obligations, regardless of their location within the area.
The SEPA zone includes all 27 EU member states plus Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Andorra, Vatican City, and the United Kingdom. This covers over 500 million citizens and more than 20 million businesses, making SEPA one of the largest integrated payment areas in the world.
SEPA encompasses several payment schemes: SEPA Credit Transfer (SCT) for regular bank transfers, SEPA Instant Credit Transfer (SCT Inst) for real-time payments within 10 seconds, and SEPA Direct Debit (SDD) for recurring payments like subscriptions. Each scheme uses standardized formats (ISO 20022) and identification numbers (IBAN and BIC).
For businesses, SEPA dramatically reduces the complexity and cost of European payments. Instead of managing different payment systems for each country, a single integration handles transfers across all 36 SEPA countries. Transaction costs are significantly lower than card payments (often €0.20-0.50 per transfer), making SEPA ideal for B2B transactions, invoices, and high-value payments.
Key Benefits of SEPA
- Low transaction costs (€0.20-0.50 vs 2-3% for cards)
- Covers 36 European countries with unified standards
- SEPA Instant delivers payments in under 10 seconds
- No currency conversion needed for euro transactions
- Direct Debit enables automated recurring collections
- Standardized IBAN/BIC format across all countries
Real-World Examples
See how SEPA payments work in different scenarios.
B2B Invoice Payment
A Dutch company invoices a German client €5,000. The client pays via SEPA transfer using the IBAN on the invoice. Funds arrive within 1 business day at a cost of ~€0.20.
Subscription Collection
A SaaS company collects monthly payments from EU customers via SEPA Direct Debit. Once authorized, payments are automatically debited each month without customer action.
Freelancer Payment
A Belgian freelancer receives payment from a French agency. The SEPA transfer arrives next day with minimal fees, far cheaper than PayPal or card processing.
Instant Payment
A customer needs to pay immediately. Using SEPA Instant, the €200 payment arrives in the merchant's account within 10 seconds, 24/7, including weekends.
E-commerce Checkout
A Dutch webshop offers iDEAL (built on SEPA) at checkout. Dutch customers pay directly from their bank, with instant confirmation and low fees for the merchant.
Cross-Border Payroll
A company with employees across Europe uses SEPA transfers for payroll. Same process and cost whether paying in Amsterdam or Lisbon.
SEPA with PayRequest
PayRequest makes SEPA payments simple through integrated payment providers, letting you accept low-cost bank transfers across Europe without complex setup.
iDEAL Integration
Accept iDEAL payments from Dutch customers through Mollie or Stripe. iDEAL is built on SEPA and is the most popular payment method in the Netherlands.
SEPA Direct Debit
Collect recurring payments automatically via SEPA Direct Debit. Perfect for subscriptions and memberships with customers across Europe.
Bank Transfer Invoices
Generate invoices with your IBAN for SEPA payments. PayRequest's payment matching automatically marks invoices as paid when transfers arrive.
Zero Platform Fee
PayRequest charges 0% on SEPA transactions. You only pay your payment provider's fees, which are typically much lower than card processing.
Related PayRequest Features
Explore features that work with SEPA payments.
Related Glossary Terms
Accept SEPA payments across Europe
Reduce transaction fees with SEPA bank transfers. Set up in minutes with PayRequest.