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23 June 2016

How to improve the cost-efficiency of cash in Europe: the EPC publishes the single euro cash area framework


With the aim of helping shape an efficient “Single Euro Cash Area” (SECA), and subsequently to reduce the cost of cash in Europe and improve its quality and trustworthiness, the European Payments Council published the updated SECA Framework.

Since the introduction of the euro in 2002, the cash has dramatically increased in the Eurozone: between 2002 and 2016, the number of banknotes in circulation has increased by 133%, while their value rose by 380%, totalling more than 1 trillion euro today (source: European Central Bank). The cost of cash – which represents about half of total retail payment social costs - has increased by 30% between 2002 and 2012. This cost was already high before the launch of the euro.

Currently, multiple national infrastructures, organised at national level and based on different business models, manage the distribution of cash in the 19 countries using the euro. To contribute to the harmonisation process in the field of cash launched by the Eurosystem, and in line with the dialogue between the Eurosystem and the European banking industry, the EPC releases a new version of its SECA Framework. The EPC believes that euro countries should strive for a decrease of cash usage. It is however the most popular payment instrument in most countries, and priority should therefore be given to the reduction of the cost of cash.

To reach this goal, the objective of the SECA Framework (which is aimed at regulators, banks, retailers, and other cash players) is twofold:

  • Defining banking industry requirements for core cash services provided by National Central Banks (NCBs), from a user perspective.
  • Outlining a common set of banking best practices for the efficient distribution and recirculation of euro cash in the Eurozone.

The SECA Framework was first published in 2006. It has been significantly updated to reflect the current cash state of play, as well as the latest – and forthcoming – European regulations regarding cash.

Full news

SECA framework



© EPC


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