IFS has developed its technology to manage the new payments system ahead of the launch of the regulationâs second stage. The first stage, which went live in January 2008, made it possible for companies to gradually start using SEPA payment transactions dependant on bank services becoming available.
SEPA will establish a single zone for the euro in which all electronic payments are handled as if they were made domestically. The current differences between national and intra-European cross border payments will no longer exist for the euro currency. The overall aim is to allow customers to make cashless euro payments to anyone located anywhere in the defined area using a single bank account and a single set of payment instruments. This will dramatically decrease the cost and time spent dealing with such transactions.
IFS Applications will support two of the three types of transaction affected by SEPA â credit transfer, which is already supported and operational, and direct debit, which the company will be able to support fully, becoming operational by the end of 2009 in time for SEPAâs 2010 deadline. The third type of transaction, card framework, may be adopted in future pending the level of customer demand. The goal is to ensure that IFSâ customers across Europe and which do business in Europe, can take advantage of the benefits the SEPA framework will bring.
HÃ¥kan Claesson, lead business systems analyst at IFS said, âIt is important for companies across Europe to be ready for the introduction of SEPA. By the end of 2010, the vast majority of banks in the EU will be working on the SEPA framework. Business systems should be in place and ready to handle these new processes.â
âIt is also important that we make this transition as smooth as possible for our customers, which is why weâve adapted early to be SEPA-ready,â Claesson added. âNew applications are not necessarily needed, customers can install our add-on to their current software and immediately experience the benefits once SEPA is implemented across the EU. The aim of SEPA is to provide solid foundations for trade that are cheaper and easier to manage across the EU. All companies operating within the Eurozone will be affected and must act now to ensure they reap the rewards.â