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The article investigates the necessity for businesses in the private sector in Serbia to have access to financing resources. Topics discussed include regulatory framework for bank financing, access to alternative financing sources such as capital markets, private equity, factoring and leasing, digital finance, crowdfunding, Distributed Ledger Technology for financing, and digital payment services as part of Serbia's Single Euro Payments Area integration efforts.

The Eurozone crisis and the refugee crisis are showcases of the problems associated with the EU's shift from market integration to the integration of core state powers. The integration of core state powers responds to similar demand factors as market integration (interdependence, externalities and spillover) but its supply is more tightly constrained by a high propensity for zero-sum conflict, a functional requirement for centralized fiscal, coercive and administrative capacities, and high political salience. We show how these constraints structured the initial design of Economic and Monetary Union and of Schengen, made them vulnerable to crisis, and shaped policy options during the crises: they made horizontal differentiation unattractive, re-regulation ineffective, centralized risk and burden-sharing unfeasible, and the externalization of adjustment burdens to non-EU actors necessary by default. In conclusion, we explore possible escape routes from the trap. [ABSTRACT FROM AUTHOR]

The creation of the Single Euro Payments Area is in full swing and the completion of the Economic and Monetary Union is the moment of consolidation, of preparing the conditions in all Member States to enable them to cope with the global financial challenges and prosper. The markets for small value payments in euro within the European Union have been very fragmented. There was a need for a project (SEPA) with a major impact on national payment markets in order to unify and standardize them in a single domestic market. Trans-European Automated Realtime Gross Settlement Express Transfer System (TARGET) is a trans-European automated real-time gross settlement system - which meets the needs of consumers by offering services at a harmonized level in the European Union. Now, however, the banking clientele needs some education about banking operations taking place at the level of the European banking system. The initial project was proposed and promoted by the European Central Bank together with the European Commission and supported by the central banks of the European Union. However, the implementation and continued development of the SEPA-Single Euro Payments Area process is the responsibility of the financial institutions, and the final beneficiaries are indisputably the individuals and legal entities that represent their "clientele". The Eurosystem has cooperated with national central banks to implement standards that facilitate the rapid automation of payment systems by offering TAREGET 2-Securities (T2S) banking clients. [ABSTRACT FROM AUTHOR]

Research background: The year 2016 ended the period of the migration from national payment services to the Single Euro Payments Area (SEPA) instruments. At the same time, however, it has become apparent that some problems remained unresolved. Overcoming them requires finding suitable technological solutions. The potential of the distributed ledger technology (DLT) is currently being explored by the financial sector and its implementation may affect the SEPA schemes in a variety of dimensions. Purpose of the article: The aim of the article was to determine the potential impact that the DLT transfer to the banking sector may have on the functioning of the SEPA in the future. The paper presents SEPA's assumptions and the current status of the project as well as the DTL's concept. It describes the technology transfer implications for the banking industry and compares the SEPA schemes currently operating with those based on the DLT. It also indicates the opportunities and threats that are the consequence of the new technology implementation and examines their significance for the SEPA. Methods: In the article, a qualitative analysis is supplemented with a quantitative one. Elements of descriptive statistics have been used to characterize the functioning of the main pillars of the SEPA schemes. The final conclusions are based on the comparative analysis of the SEPA schemes and developed DLT applications. Findings & Value added: The existing problems might be solved by supplementing the SEPA payment schemes currently operating with the applications based on the DLT. The systems that will be subsequently developed will provide the required real-time processing and a global reach. They will also extend the functionalities of the SEPA schemes with the ability to transfer other currencies. The implementation of this technology will result not only in new financial products but, first of all, in creating new business models. Consequently, we may expect a modification of the currently operating SEPA schemes, based on their supplementation rather than total replacement in a short time frame. [ABSTRACT FROM AUTHOR]

The article discusses how to make payments to online shop by SEPA direct debit from home. It notes that the VKI is under Austrian law for the purpose of consumer protection. It adds that the consent of the payer for a credit check is required for activating the SEPA direct debit . It adds that the VKI bases its claim on those in the main proceedings clause stating that the payer is responsible for the SEPA direct debit of payments.

The scope of this article is to discuss the implications of the Single Euro Payments Area from the perspective of the European SMEs. The current unpredictable and very challenging market situation has not fundamentally changed the fact that payment services need to continue modernization in order to become more flexible, agile and adapt in order to comply with its important purpose in society.SEPA is needed to ensure the new modern payment platform that can enable Europe to move beyond basic services, increase payments efficiency, embrace innovation and integrate further services in the trade process. European Small and Medium-sized Enterprises see SEPA see SEPA as an important step towards the completion of the internal market, but such a major initiative has to be well planed, must meet the practical needs of enterprises and provide, at least in the long run, positive incentives for all market participants.

Ireland was one of the initial EU member states to move to currency union as of January 1st 1999. The single-currency project, and Ireland's participation in it, had been vigorously debated within the Irish economics community in the 1990s. The paper reviews this debate with three particular questions in mind. To what extent was it recognised that membership might increase Ireland's vulnerability to external shocks? Would membership inhibit or facilitate an appropriate response, and were the implications of membership for the appropriate conduct of economic policy correctly identified? The paper also briefly reviews current thinking on necessary reforms to eurozone structures. It ends by considering the counter-factual - what exchange rate regime would Ireland have adopted if it had not joined the euro, and what might the consequences have been? - and offers a retrospective assessment of the debate that took place prior to membership. [ABSTRACT FROM AUTHOR]

From July to December 2011, the three-month EURIBOR-OIS and EURIBOR-Repo spreads quadrupled and reached 100 basis points due to a stabilization of the EURIBOR and a decrease in the overnight index swap (OIS) and Repo. Using a specific monetary policy announcements and financial indicators database, we find that the European Central Bank’s (ECB’s) unconventional measures did not systematically have a calming effect: Asset buyout announcements decreased market strains, whereas interest rates and liquidity provision announcements did not. Moreover, liquidity provision seems to have a stressing effect. Our findings are consistent with the theoretical underpinnings according to which forward guidance crucially determines the effectiveness of unconventional monetary policies. [ABSTRACT FROM AUTHOR]

There seem to be two typical responses to the failure of the euro project that the last five years have exposed. The first, mostly from those outside the eurozone, is that the whole project was doomed from the start and should be abandoned. The second is that the only way forward is further political integration. However, the problems of the eurozone are not intrinsic to any attempt at a monetary union, but rather reflect design flaws in the particular version of monetary union that was embodied in the euro project. [ABSTRACT FROM AUTHOR]

This article traces the evolution of EU payments law for retail payments, identifying four phases of its development. In spite of the EU's founding principle of free movement of payments, the first two phases of EU payments law were characterised by negative integration and soft law measures with limited effects on the performance of cross-border payments. The introduction of the euro started the third phase of EU payments law, in which the EU became more aggressive in its approach to regulating payments. Nevertheless, EU legislation was mainly aimed at triggering and supporting "voluntary self-regulation" by the banking industry. As a result, EU payments law acquired a hybrid character. The ensuing Single Euro Payments Area (SEPA) is composed of publicly and privately made rules which became mingled together into a single system. Finally, the fourth phase of the development of EU payments law has witnessed, on an unprecedented scale, EU public regulation colonising areas that used to be in the private domain. It also marks a nuanced shift of objectives of EU payments law: integration is no longer the overarching objective but "regulation for competition" has surfaced as an equally important goal. [ABSTRACT FROM AUTHOR]

We present an approach, based on the notion of fuzzy similarity, to the comparison of economies under default risk. We run a counterfactual analysis of the perspectives of the most troubled countries in the Eurozone compared with Argentina in 2001. This allows us to assess the possibility that these economies will end up following the path of Argentina. [ABSTRACT FROM AUTHOR]

The cooperative banks in Europe serve more than 215 million customers and process a significant part of all European payment transactions. As a central bank for German cooperative banks, DZ BANK' s annual payments volume exceeds 4.5 billion transactions. With this significant portion of the whole European payment volume, DZ BANK can be considered as a representative sample of developments in European payments -- from the experience of the SEPA migration to the present state of play and to future developments. According to DZ BANK' s data, the SEPA migration followed exponential behaviour until the planned end date in February 2014. The hesitant migration can be understood as an indication of an incongruity between long-term social benefits and short-term advantages perceived by the clients. But the European market integration provided the tangible advantage, for example, for German cooperative banks to bundle transaction processing volumes, and they achieved a highly efficient operating model with two-steps of economies of scale on national and pan-European levels. The SEPA schemes fit the model of a payments ecosystem and can be described as a 'multi-sided business platform', facilitating the payment flow between consumers and merchants or employers. This description provides a chance to compare this standardised and interoperable platform (also known as SCT and SDD) with other types of business platforms, which facilitate interaction between consumers and retailers similarly. For the future, predictions forecast a tripartition of the European payments industry revenues in the three segments of standardised payment formats, cards payments and 'alternative payment methods' (the latter with the highest growth rates). Payments are reaching a crossroads as to whether a 'way beyond SEPA' can be based on the existing model or whether payments in the future will require new forms of coexistence and partnership models with vertical or horizontal integration. In a market-driven development of payments, cooperative banks have multiple opportunities -- from mobile front-end apps to back-end joint ventures and potential partnership with new dedicated clearing platforms -- as long as they continue to combine local client intimacy ('local knowledge') and added value ('services tailored to clients' needs') with efficient operating models according to the principle of subsidiarity. [ABSTRACT FROM AUTHOR]

This paper first documents the evidence showing how an efficient retail payment infrastructure enhances economic performance. It then reviews the policy tools available to promote efficient retail payments in Europe. The authors argue that, while SEPA is an important policy initiative that harmonises payment methods across the EU, it alone is not enough. Vigorous competition and consumer protection policies as well as direct interventions discouraging large-value cash payments would be particularly attractive policy tools, as they would put no strain on stretched government budgets. [ABSTRACT FROM AUTHOR]

The establishment of the Single Euro Payments Area (SEPA) for credit transfers and direct debits was finalised via Regulation (EU) 260/2012 of the European Parliament and the European Council. But without the card payment sector, the vision of a harmonised single payment market remains incomplete. A harmonised market for cards should provide a framework within which merchants in Europe can accept a variety of SEPA-compliant card brands and products, and choose from a variety of acquirers without being artificially constrained by legal, technical or procedural aspects associated with the respective card schemes. This paper focuses on SEPA Card Clearing (SCC), a project aimed at harmonisation, which is nearing completion in the acquirer-to-issuer domain. The aim of SCC is to create a new common ISO 20022 standard as an open standard (ie irrespective of a specific card scheme) for clearing and processing debit card and credit card based transactions between banks that takes into account the different market needs with respect to clearing and settling debit and credit card transactions, based on existing standards in different countries. Therefore, with SCC, a clear 'unbundling' of card schemes and processing can be achieved. This should support open and fair competition and, in so doing, lower the market entry barriers for new players. In technical terms, the SCC Framework is based on the SEPA Direct Debit (SDD) scheme and its concomitant SDD-message standards and business processes. The SCC Framework is freely available for any market participant in Europe, and it enables the use of one clearing infrastructure for all relevant payment instruments in the SEPA, direct debits, credit transfers and cards. Lastly, SCC also supports innovation. The special payment message container in SCC could also be used for the processing of any other type of payments (ie payments via mobile phone or biometric data). [ABSTRACT FROM AUTHOR]

This paper reviews the evolution of the Single Euro Payments Area (SEPA) by identifying a number of areas in relation to efficient cross-border use of SEPA credit transfer and direct debits. Many international companies would like to make use of the harmonised SEPA proposition and centralise their payments and receivables flows. For those focusing primarily on the benefits of operating on a cross-border basis, which is one of the key opportunities envisaged for the SEPA, it is important to assess the degree and detail of emerging national approaches in terms of the implementation of the ISO 20022 XML standard, the types of national or regional Additional Optional Service and the different clearing practices associated with these. Other areas, such as mandate management in the case of direct debits and creditor identifiers or the prolonged coexistence of several domestic 'niche schemes', must be taken into account by companies that operate in a number of SEPA markets. Member states, EU regulators and supervisors, and the European Payments Council continue to focus on the harmonised implementation of SEPA. In this context, the SEPA Regulation, which mandated migration to the SEPA across the Eurozone by 1st August, 2014 is a key building block, which helped to ensure the momentum for migration. With the various timelines of the migration calendar brought in by the SEPA Regulation, the path for the long-term success of the SEPA harmonisation project has been laid out. Benefits of efficiencies and cost reductions for all users, including corporates, as well as increased competition are all expected to be realised over time. [ABSTRACT FROM AUTHOR]

Results from a longitudinal study among Dutch consumers indicate that the unification of the European payments market is beginning to pay off. The similarity between payment behaviour of Dutch consumers within the Netherlands and when visiting or making a remote payment to another country in the euro area has increased during the past seven years. Perhaps even more importantly, the satisfaction of the Dutch about cross-border payments within the euro area has also improved considerably, but some consumers still experience problems with respect to ease of use, transaction speed and acceptance of their preferred payment instrument when paying abroad or paying cross-border. Such issues deserve further attention on a European scale. [ABSTRACT FROM AUTHOR]

The 1st of August marked the first step of the implementation of the Single Euro Payments Area (SEPA) in the EU. This paper discusses how SEPA benefits European banks, corporates and consumers and considers what the next steps are. [ABSTRACT FROM AUTHOR]

With the creation of the euro by the Maastricht Treaty in 1992, European integration has deepened. Even with this step done the financial market is fragmented. In order to eliminate this disadvantage, the European Union has taken a number of measures. The first step is the Financial Services Action Plan in 2000, through the Lisbon Strategy. Second is the European Commission Regulation 2560/2001 to harmonise fees for cross border and domestic euro transactions. Third is the first pan-European Automated Clearing House in 2003. Last great step made is the Single Euro Payments Area (SEPA) in 2008. In this paper, we want to research the degree of implementation of SEPA by using quantitative indicators: credit transfers, direct debits and payment cards, and the effects of this system on bank efficiency. [ABSTRACT FROM AUTHOR]

Mobile payments are on the rise, as are virtual currencies emitted by private market players or by automated decentralized systems. The Payment Services Directive and E-money Directive form the legal framework for protecting consumers in transactions with payment services and e-money providers. However, the unclear scope of applicability of that legal framework could lead to legal uncertainty. Moreover, evolutions in the market, such as Bitcoin, are excluded from its scope. The European Commission has proposed a new framework, which will be analysed to establish whether it can bring more legal certainty to the scope of application of this legal framework. [ABSTRACT FROM AUTHOR]

This paper aims to assess the EU payments framework, as implemented in France, from the standpoint of the freedom of commerce and the vitality of the payments industry, to assess whether too much emphasis has been put on general interest such as consumer protection. [ABSTRACT FROM AUTHOR]

This paper examines the European Union (EU) decision-making process around financial legislation, with a particular focus on the payment services industry. Given the plethora of regulatory requirements emanating from the EU, it is important to understand the procedures and processes that lead to legislation. In that regard, the advice of industry experts is key and, therefore, this paper explores ways of applying and sharing expert knowledge at a technical level in appropriate ways. The engagement process and opportunity to influence and shape legislation is discussed in detail, with a view to enabling improved dialogue between market participants and those responsible for developing policy at EU level. [ABSTRACT FROM AUTHOR]

Payments are essential for the functioning of the global economy and banks have done well from payments ever since the establishment of organised banking in the 15th century. Times have changed, however. New players have entered the market, some banks have abandoned payments as the rules and regulations have become more complex, and payments have increasingly been seen as a commodity, even comparable with the public good. For banks not to lose ground, they can look at smart possibilities to provide good service to their customers while dealing with limited resources. This paper suggests three opportunities: sourcing with a layered approach, with only individual processing steps in the value chain to reduce and share cost; co-strategies, managing the four Cos (connectivity, coopetition, collaboration and co-creation); and re-evaluation of products offered to achieve a good basis for a sound product line. [ABSTRACT FROM AUTHOR]

Reciprocity has always been a major consideration in the payments world, is integral to correspondent banking and, therefore, also to the way in which international payments are made. But this model is coming under direct threat from three directions. First, the model depends on large lines of credit extended by one bank to another, and these are no longer so palatable after the credit crunch. Secondly, banking regulations must increasingly be factored into deliberations that correspondent bankers could previously decide on volumes, values and fees. Thirdly, and most cogently, price and competition -- especially in the Single Euro Payments Area (SEPA) -- will all but eliminate the correspondent model and supplant it with direct use of infrastructures, but without reducing costs. That could be the worst outcome of all. Outside the SEPA, banks are hamstrung by regulation and by their tie-in to high-cost IT approaches and, indeed, to the use of one another within those models. Inside or outside the SEPA, there simply is not enough money on the table to allow generous reciprocity, and that, combined with credit and regulatory considerations, will change the correspondent discussion from a partner discussion to a buyer/supplier one. [ABSTRACT FROM AUTHOR]

This paper explores the market potential of electronic invoicing, which is expected to transform the way business and consumers exchange their bills in the coming years. When defining electronic invoicing, the paper explains why it is important to look beyond the pure exchange of electronic invoicing (e-invoicing in a strict sense), as most of the benefits for enterprises are expected from the full integration and automation of the purchase-to-pay cycle (e-invoicing in a broad sense). These benefits, which include cost savings for enterprises, time savings and additional convenience for consumers, could in a scenario of mass adoption bring considerable benefits to the EU economy as a whole. After describing the current highly fragmented einvoicing servicing landscape, with many providers competing on a wide variety of business models, the paper analyses why uptake of electronic invoicing has been modest up to now. In what follows, it develops what is ongoing at EU level to promote the uptake of electronic invoicing with particular attention to the proposed recommendations of the European Expert Group, which could create a European Electronic Invoicing Framework, where electronic invoices are legally accepted by all VAT authorities and can be exchanged in a cheap and easy way between trading parties throughout the EU. The paper explains why we are at the doorstep of this vision. First of all, a new regulatory framework is on its way, which will ensure equal treatment between paper and electronic invoices; second, the development of an international standard is proceeding; and third, initiatives to further promote interoperability between systems are emerging, ensuring that all trading parties will be enabled to reach each other. The paper closes by addressing the opportunities for service providers and banks for making e-invoicing the dominant way of exchanging bills, especially by focusing on the segment of small and medium enterprises. [ABSTRACT FROM AUTHOR]

Following the European Commission retail banking sector inquiry, the area of payments -- and multilateral interchange fees (MIFs) -- became a priority. Also, the Single Euro Payments Area (SEPA) initiative needed to be monitored from a competition perspective. Importantly, the recent (temporary)MasterCard undertakings included a MIF level meeting the exemption criteria of Article 81(3). The tourist test methodology used indicates the MIF level for which merchants are indifferent in accepting cash or cards, resulting in cardholders' choosing payment instruments efficiently, while ensuring that retailers are not faced with disproportionate fees. Transparency measures, crucial for consumers and merchants to make better informed choices about the payment means they use and accept, have also been adopted. Although the MasterCard decision was also the basis for the analysis, the recent joint statement of the European Central Bank (ECB) and the European Commission expressed the view that a general per transaction MIF does not seem necessary for the long term, providing clarity for SEPA Direct Debit to be launched on 1st November, 2009. Unlike card payments, direct debits are typically made on a regular basis, and direct incentivisation of their use is possible and already practised. In addition, many member states have cheap and widely used direct debit systems functioning very efficiently without MIFs per transaction. Hence, the economic tools and the applicability of the tourist test methodology need to be fine tuned and adapted to the payment markets realities: significant objective evidence would need to be provided, and each case assessed individually. [ABSTRACT FROM AUTHOR]

This paper describes the opportunities offered by the Single Euro Payments Area (SEPA). It argues that adopting a strategic approach is the best way to reap the benefits offered by SEPA. Seven strategic steps are described to save money and gain a strategic cash management advantage using SEPA. [ABSTRACT FROM AUTHOR]

Intensifying market and price pressure forces banks to evaluate all options to reduce costs while at the same time extending their services and improving their service levels. To achieve these objectives, the outsourcing of back-office activities to industrial full-service providers is an important strategic option. In the area of payment transaction processing, the introduction of the single euro payments area (SEPA) is a trigger point forcing banks to take a decision soon about outsourcing -- or make significant investments in order to upgrade their existing infrastructure. Owing to European standardisation in the context of SEPA, payment transaction processing will be the first back-office activity in banking with a largely standardised European market. After reviewing the current situation and trends in payments processing, this paper argues that this will lead to the emergence of an efficient European payment transaction processing market, in which banks can freely choose suppliers for their payment transaction processing based on market prices as well as having clear alternatives in the market. Critical traditional objections to outsourcing will thus, in the medium term, no longer apply to payment transaction processing, so that banks can reap the benefits of outsourcing with clearly limited risks. [ABSTRACT FROM AUTHOR]

Europe-wide cashless payments are soon set to become reality with the 'single euro payments area' (SEPA). In line with plans by the European Commission and the European Central Bank, from January 2008 bank customers in all EU countries will be able to make cross-border credit transfers, direct debit and card payments as easily and securely as they already do in their home countries. This paper will also outline the viewpoint on SEPA of the Sparkassen-Finanzgruppe (group of German savings banks, Landesbankert and associated companies), who believe this transformation of cashless payment transactions must be customer-oriented -- in other words private customer-oriented too -- and improve rather than worsen the competitive landscape in Europe. As far as existing debit methods in Europe are concerned, the German banking industry views a network of competitive European systems working in collaboration with global methods as a viable solution for meeting the requirements of the SEPA Cards Framework (SCF) [ABSTRACT FROM AUTHOR]