New service introducing an alternative into the European-wide clearing market.
France-based automated clearing house STET is launching SEPA.eu, a new clearing and settlement mechanism (CSM) for the Single European Payment Area (SEPA). The new service will become operational in November 2016, with French direct debit transactions the first to migrate.
The new infrastructure will operate a multi-cycle, delivery-after-settlement model but will rapidly evolve from traditional batch processing to real time operations. SEPA.eu will quickly develop value added services, such as fraud monitoring.
The next phase of transaction migration will be to move credit transfers into the CSM.
Jean-Marie Vallée, CEO of STET, says: “The European payments market is continuing to transform, creating challenges for market participants to process payments faster at the same time as ensuring compliance with regulations. This creates clear opportunities for payment service providers such as STET to help customers meet these heightened expectations.” SEPA.eu can be accessed through SWIFTNet, meaning that any bank globally can send its SEPA SCT and SDD transactions to STET where the system can further accept a number of industry adopted message formats. With multiple intraday clearing cycles, settlement is made over SWIFT in Target2.
STET is the major clearing system in Europe with more than 52% of euro transactions multilaterally cleared in CSMs. This new offering will complement STET’s existing service range consisting of “Multi-CSM”, its single platform, multi-community, for the non-SEPA instruments including cards clearing and STET’s Instant Payment Solution.