The Deutsche Bundesbank recently released data on the implementation of SEPA Direct Debit by all the Banks across the member states. We analyzed this data and here are our key findings:
The European B2C Market
According to eMarketer’s latest forecasts, worldwide business to customer (B2C) eCommerce sales will increase by 20.1% this year to reach EUR 1.1 trillion. Growth comes primarily from rapidly expanding online and mobile user bases in emerging markets, increases in mCommerce sales and advanced shipping and payment options.
In 2012, Europe accounted for close to EUR 312 Billion in eCommerce sales. The Western European region, including Belgium, France, Ireland, Luxembourg , The Netherlands and the UK, was in the 1st position for e-commerce size, with a 51% European market share. The total B2C eCommerce sales of W.Europe closed at EUR 160 Billion, a 20% growth compared to 2011.
What are the advantages of using SEPAone?
SEPAone is a SEPA Direct Debit enabler. Our focus is on providing Payment Service Providers (PSPs) and Merchants with the proper tools, so they can offer Direct Debits to their clients. Think of SEPAone as Stripe for Direct Debit in Europe. We have created a simple way for businesses to set-up and accept Direct Debit payments over the internet and through multiple platforms.
How do I implement SEPA Direct Debit for my Business?
There are 2 ways to set up SEPA Direct Debit for your business.
a. Do it yourself
b. Use a Direct Debit enabler, such as SEPAone
There are various steps to be taken and technological processes to be implemented before you can successfully start using SEPA Direct Debit for your business. We have outlined below what the process might look like for you. Please note that the process may vary based on your location and government regulations.
What’s so great about SEPA Direct Debit?
In the current payment system, businesses face a lot of difficulties in collecting payments from other SEPA countries. Due to the differences in payment models, these payments often require different formats and data elements. Taking these payments is usually expensive and time consuming.
The SEPA Direct Debit scheme simplifies the collection of payments across multiple countries, by defragmenting the payment procedures. This will allow customers as well as businesses to make payments across the SEPA member states just as they make domestic payments.
SEPA Direct Debit: A breakdown
What is SEPA?
SEPA stands for Single Euro Payments Area, and is an initiative supported by the European Payments Council (EPC). The main purpose of this initiative is to improve the efficiency of cross-border payments and turn the fragmented national markets for euro payments into a single domestic one . SEPA will enable customers to make cashless euro payments to anyone located anywhere in the area, using a single bank account and a single set of payment instruments. Economically speaking, this is very important in achieving economies of scale, by creating a common framework of payment instruments, standards and procedures.