20 October 2016

ANEC's Wilson: The consumers’ perspective on the SEPA Instant Credit Transfer Scheme

In this interview, George Wilson outlines his general opinion on the scheme, explains how European consumers could benefit from pan-European instant credit transfers, and talks about how the scheme could evolve in the future.

The public consultation of the SCT Inst scheme ended in July. Though ANEC didn’t contribute, maybe you would like to share with us your opinion on the proposed scheme? Are you satisfied with its main features?

The SCT Inst scheme is a logical development of the EPC portfolio, helpfully based on the existing SCT scheme, thus allowing Payment Service Providers (PSPs) to utilise systems already broadly compliant with it. The fact that it is optional is helpful, and although ambitious in requiring completion of the transaction within 10 seconds, this does seem realistic. Whether the initial maximum amount of 15,000 euro per transaction is realistic remains to be seen, though I understand that it is flexible. It is helpful that the amount may be varied by agreement, and that the present level is seen only as ‘initial’. In addition, consumers will welcome the availability of transactions 24/7/365.

What would be the main advantages of a pan-European instant credit transfer scheme for the European consumers that you represent? What are the typical use cases you would foresee for consumers?

As a single market for retail payments, SEPA is well placed to have consumers use the SCT Inst scheme as a highly convenient, secure and trustworthy means of paying for a growing range of goods and services throughout the Single Market, especially in the growth area of services. In 2012 about a quarter of the EU population who made purchases over the internet bought at least once from a seller in another Member State.

Secondly, in 2012 there were some 17.2 million people living in an EU state which was not their EU country of birth. This kind of migration illustrates the enormous potential for cross-border remittances between family members.

Thirdly, the use of the SCT Inst scheme by Small and Medium-sized Enterprises (SMEs), larger corporates and government departments is likely to increase as the Single Market continues to deepen.

In the long run, how would you like the SCT Inst scheme to evolve?

In future, the scheme could usefully build on the flexibility it presently shows so that the increasingly varied needs of consumers can all be met. This might mean, for example, an increase in the maximum amount allowed per transaction which would remove the need for a special agreement. It is to be hoped that the scheme management maintains a high level of security and privacy in the exchange of private data between the originator and the recipient.

Full interview

 

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