Build it and they will come, perhaps

The transformation of the European payments landscape is now firmly into the next phase with the launch of the single euro payments area (Sepa) direct debit (SDD) programme on 2 November 2009. Colin Kerr looks at how banks and treasurers will take advantage of the new products

Colin Kerr is industry manager, payments and core banking, worldwide financial services at Microsoft

Much of the Sepa focus to date has been on bank compliance and the effect of the new rules on bank and payment processors. The industry has been less focused on delivering the value proposition to corporate clients (although it certainly affects treasuries in some areas, for example return or refund time limits). After all, the over arching Payments Services Directive (PSD) is primarily aimed at regulating the banks and processors in the payments industry. However, one also must question the basic business case of Sepa because not all affected participants in the payment value chain were participants in the initial design and development.