Quantitative indicators

Migration of credit transfers

Euro area

The chart (red line) shows the share of SEPA credit transfers (SCT) in the inter-bank domain as a percentage of the total volume of credit transfers (CT) - that is credit transfers in the "old" as well as in SEPA format.

The higher the value of the indicator, the higher the usage of the newly introduced SEPA product. A figure of 100% would indicate that only SEPA products are used and have fully replaced the non-SEPA instruments.

The bars in the chart above indicate the total number of SCT transactions processed by the infrastructures located in the euro area. The figures are not seasonally adjusted.

The figures are based on aggregated data from the following clearing and settlement infrastructures/systems located in the euro area: ACH Finland, CEC, RPS, Dias, Iberpay, SIT/CORE, BI-COMP, JCCTransfer, Equens, Step.at, SIBS, Bankart, SIPS, ESTA, STEP2 and CS.A.

Transactions sent for example via links between infrastructures have been excluded to avoid double-counting. The results also exclude "on-us" transactions (credit transfers between accounts at the same bank), as well as transactions cleared between banks bilaterally or via correspondent banking.

The results are monthly figures. However, as the SEPA Credit Transfer scheme was launched on 28 January 2008, the first result 02-2008* refers to the period 28 January to 29 February 2008.

At the national level

The indicators show the share of SEPA credit transfer (SCT) transactions as a percentage of the total volume of all credit transfer (CT) transactions initiated in a country (i.e. CTs in the legacy format as well as SCTs). The indicators assess the current status in all euro area countries. From the first half of 2008 until mid-2012, the indicators were compiled on a semi-annual basis by the NCBs. As of July 2012, the indicators have been and continue to be compiled on a quarterly basis.

Non-euro area EU countries participate in this exercise on a voluntary basis only. The indicators provided refer to euro transactions only and are compiled by the NCBs either on a quarterly or a semi-annual basis.

The methodology applied to collecting the data and to compiling the indicators was defined in such a way so as to obtain reliable figures and facilitate comparisons across countries. In particular, the indicators had to cover a significant number of credit transfer transactions initiated in a country (around 80%). Given that clearing and settlement practices differ across countries, the national SCT indicators were compiled using data on transactions processed by the clearing and settlement mechanisms, on the bilateral clearing of transactions between two credit institutions, on correspondent banking, as well as on the processing of so-called "on-us" transactions, i.e. transactions between accounts at the same bank.

Migration of direct debits

Euro area

The chart (red line) shows the share of SEPA direct debits (SDD) in the interbank domain as a percentage of the total volume of direct debits (DD), i.e. direct debits in the “old” as well as in the SEPA format.

The higher the value of the indicator, the higher the usage of the newly introduced SEPA product. A figure of 100% would indicate that only SEPA products are used and have fully replaced the non-SEPA instruments.

The bars in the chart above indicate the total number of SDD transactions processed by the infrastructures located in the euro area. The figures are not seasonally adjusted.

The figures are based on aggregated data from the following clearing and settlement infrastructures/systems located in the euro area: CEC, RPS, Dias, Iberpay, CORE, ICBPI/BI-COMP, Equens, Step.at, SIBS, Bankart, SIPS, ESTA, STEP2 and CS.A. As such, SDD transactions which are cleared bilaterally or processed within the same institution are excluded from this indicator.

Migration of card payments

Cards are different from credit transfers and direct debits. To monitor the migration of cards and card transactions to SEPA, related aspects need to be looked at, such as migration to the EMV specifications - i.e. the standard ensuring interoperability between the chips on cards and point-of-sale terminals (POS terminals) or automated teller machines (ATMs). In order to be SEPA-compliant, card schemes must apply the EMV specifications and must require the use of PIN codes. Although it began prior to SEPA, migration to EMV can still be seen as an important indicator in the sense that non-EMV cards, POS terminals, ATMs and transactions are, by definition, not SEPA-compliant.

Indicator of the percentage of EMV transactions at POS terminals

The Eurosystem has developed a SEPA card indicator for migration to EMV at transaction level. An “EMV transaction” is understood to be a card payment transaction in which the following criteria are satisfied: an EMV-compliant card is used at an EMV-compliant terminal and EMV technology is used in the processing of the transaction. A necessary prerequisite for the EMV migration at transaction level is the EMV migration of cards and terminals.

The indicator is calculated as the number of EMV transactions at POS terminals divided by the total number of transactions at POS terminals (irrespective of the country of issuance of the card). The indicator is affected slightly by transactions conducted using cards issued outside the SEPA area. If the card is issued in a country outside SEPA that have already been migrated to EMV then the figures are positively affected. On the other hand if the card is issued in a country outside SEPA where the EMV is not implemented then the indicator is negatively affected.

For this indicator, the Eurosystem cooperates with card-acquiring processors – i.e. entities that, acting on behalf of the acquirer, are responsible for the processing of card payment transactions from their acceptance at the point of sale to their delivery at the routing centre ("switch"). The following processors are currently participating in the exercise: Atos Worldline, Bankart, CECA, CETREL, B+S Card Service, BCB Processing, ConCardis, TeleCash, NETS Estonia, Deutsche BP, Deutsche Postbank, Equens, First Data, Intercard, Intesa Sanpaolo Card, JCC Payment Systems, Montrada, WorldPay, Redes y Procesos, SERMEPA, SIBS, UNICRE, CGD and BCP. In the case of France, the absence of a French processor has been corrected for on the basis of figures provided by the Banque de France. The processors report biannually, but the results take the form of monthly figures. The expectation is that this transaction-level indicator will continue to gradually increase.

Indicator of cross-border use of cards

A second angle when looking at SEPA migration for cards concerns cardholders’ actual use of their cards when travelling abroad. That use depends on three things: first, the technical capabilities of the card and the terminal; second, the merchant’s acceptance of the card in question; and third, the extent to which people do indeed have a uniform “customer experience” across the SEPA area. This indicator is calculated as the number of POS transactions conducted using cards issued outside the country divided by the total number of POS transactions. The indicator is affected slightly (in a positive aspect) by transactions conducted using cards issued outside the SEPA area.

Data are collected from the same card-acquiring processors that report on EMV transactions as a percentage of transactions at POS terminals. They report biannually, but the results take the form of monthly figures. It was expected that relatively low levels (1-2%) would be seen at the outset in January 2008, and that marginal growth would be observed in the years that followed. A move to a significantly higher level would indicate that SEPA had been successful in changing the card industry, the card acceptance practices of merchants and/or the payment behaviour of cardholders.

Cross-border transactions accounted for around 3.5% of POS transactions in the euro area at the beginning of 2008. The indicator shows higher values during the period from July to September each year. This might be a result of summer holidays, as more people travel during the summer months. In June 2012, there were around 6% cross-border POS transactions.

Indicators of EMV migration for cards, ATMs and POS terminals

The following three indicators were compiled on the basis of quarterly data provided by the European Payments Council (EPC). The collection of these data was discontinued at the end of the year 2011, with reference to the almost complete levels of EMV migration both in the euro area and in the EU. As of the beginning of 2012 no further data points will be added.