SEPA Direct Debit Business-to-Business

SEPA currently covers 41 countries under harmonized rules for euro credit transfers and direct debits. Cross-border euro transfers between Turkey and Europe can cost up to EUR 40 for amounts between EUR 1,000 and EUR 5,000.

The second major global fintech to join the EPC after Stripe's January 2025 entry, PayPal will contribute to governance of SEPA credit transfer, direct debit, and instant payment schemes used by 4,000 payment service providers across 41 countries.

The SCT volume decline at STEP2 coincides with accelerating instant credit transfer adoption across the euro area.

ECB payment statistics for the first half of 2025 recorded 11.3 billion direct debit transactions in the euro area. Volume grew 2.3 percent year-on-year. Value increased 6.2 percent to €5.6 trillion.

The European Parliament's ECON Committee approved the final PSD3 and PSR trilogue texts on May 5 with commanding majorities, clearing the last substantive legislative hurdle. The full plenary vote was not scheduled during the May 18-21 session, pushing formal adoption to June and potentially delaying Official Journal publication into late summer.

The European Commission formally welcomed Serbia's operational participation on May 5. Serbia is the fifth EU enlargement partner to join SEPA, following Albania, Moldova, Montenegro, and North Macedonia.

STEP2 batch credit transfer volumes have fallen year-on-year in every month of 2026. SEPA Direct Debit Core volumes grew 2.6 percent year-on-year in April 2026, demonstrating that mandate-based recurring payments face different competitive dynamics than one-off credit transfers.

ECON approved the PSD3 and PSR final compromise texts on May 5, clearing the last committee hurdle before a full Parliament plenary vote expected during the May 18-21 session. The legislation replaces PSD2 and applies 21 months after Official Journal publication, likely around March 2028.

The approval sends both texts to plenary for a final simple-majority vote expected later in May, with Official Journal publication anticipated by September 2026 at the latest, starting the 18-month countdown to PSR application and PSD3 transposition.

The final legislative texts for the EU payment services overhaul passed a key Council hurdle on April 22, 2026, with parliamentary committee and plenary votes expected in May. Official Journal publication is targeted for mid-2026, starting the 18-month clock for PSR general application.