SEPA Payments

If you are wondering how international money transfers work, you’re in the right place.

SEPA Payments 🌍

SEPA stands for the Single Euro Payments Area and represents a new format for international bank transfers within Europe. The SEPA zone comprises 34 countries, including 28 EU member states alongside Iceland, Monaco, Switzerland, Liechtenstein, Norway and San Marino. It was created to simplify cross-border money transfers in Euros, the only currency SEPA supports.

Let’s visit our example and assume that Mark is sending Kate €100, and that both banks are part of SEPA. If the two banks have commercial accounts held with one another, then the flow of money is the same as our first example in this post:

  • Mark’s bank (Bank 1) will debit Marks’s personal account by €100. ➖
  • Mark’s bank will credit Bank 2’s commercial account held with Bank 1 by €100. ➕
  • Kate’s bank (Bank 2) will credit her personal account by €100. ➕

If they do not have an established relationship, the transfer will pass through a central bank account in Europe, let’s look up it the European Central Bank by way of example. In a very simplified way, this is how the money would flow:

  1. Mark’s bank will debit his account by €100 ➖
  2. Mark’s bank will credit their commercial account held with the European Central Bank (intermediary bank) by €100 ➕
  3. The ECB will then credit Kate’s bank by €100 ➕
  4. Kate’s bank will credit her account by €100 ➕

What SEPA transfers have to offer?

  • Allows you to make cross border payments in Euros ✔️
  • Transfers usually take 1 day to reach the recipient’s account ✔️
  • Fast and easy domestic and international bank transfers
  • Speedy international direct debit payments 
  • Low costs and no hidden fees
  • Businesses get access to a broader European market (36 countries in the SEPA area)

What conditions must a SEPA transfer meet?

  • The payment must be in euros.
  • The IBAN format of the recipient’s account number must be used.
  • The transfer fees must be shared.
  • The recipient’s bank has accepted the SEPA payment processing conditions.

SEPA transfers with PayPorter

PayPorter can carry out SEPA payments within the 36 Eurozone countries plus the SEPA countries and territories using EUR.

With PayPorter, you can open a personal account right in your digital wallet of kuikpara.

We support SEPA transactions for both our physical points and personal digital wallets users. To make a euro payment, go to Transfers and hit the button Send in the right bottom corner of kuikpara application. In the next screen, you will need to choose the SEPA countries that you’re ordering Then, fill in the required bank account details and the payment date and hit the button to continue. You will only need to provide a receiver’s IBAN. 

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