What are the Implications of SEPA for US Companies doing business in the Eurozone?

San Francisco Business Times Event on SEPA at Four Seasons Hotel in San Francisco

I attended the San Francisco Business Times and HSBC Eurozone seminar on the Single Euro Payments Area (“SEPA”) at the Four Seasons Hotel in San Francisco.  Michele Zaquine, Senior SEPA Commercialization Manager for HSBC France, was the Keynote Speaker. SEPA is an European Union initiative to transition Euro commercial payments and cash management practices from a fragmented market (currently there are over 50 clearing systems across Europe) to a single payment system in 33 countries – simplifying the way of doing business in the Eurozone and making it more efficient and less expensive.

These changes, which went into effect on February 1^st, will have a dramatic impact on companies within the EU, including foreign entities doing business there.  So, what are the implications for US companies doing business in the Eurozone?  Please reference article by Darren Dahl, Forbes BrandVoice.

In summary, the new SEPA regulations are expected to build a centralized European landscape with a legal framework to govern; a level playing field for corporates; common consumer protection laws; and increased efficiencies in the cross border payments market – reducing both risk and costs.  SEPA was put in place in the Eurozone earlier this year and is expected to be adopted within the European region, including non-Euro countries, by 2016.  These changes are anticipated to foster even greater cross-border activity and new business opportunities for growth in Europe.

Until next time,

Doreen