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Single Euro Payments Area, (SEPA)

What is SEPA and why is it necessary?

SEPA unites all euro area countries by enabling private and corporate customers as well as public sector institutions in the European economic area to initiate and receive electronic euro payments on common grounds, without differentiating between cross-border and domestic payments. In order to implement SEPA and perform euro payments there are common:
  legal grounds;
  technical standards;
  payment instruments - credit orders, direct debits and card payments;
  rules for the infrastructures that process payments;
  business customs.

SEPA fosters the smooth operation of payment and settlement systems, because it harmonises the performance of non-cash euro payments. In addition, SEPA helps to finalise the adoption of the euro, as the implementation of common payment instruments together with euro cash forms an integral whole that helps to improve the competitive ability and efficiency of the entire European economy. According to the survey of the European Commission, SEPA helps to save hundreds of billions of euros all over Europe, read more here (.pdf, 4,85 Mb). Through the continuous development and innovation of payment instruments, the future goal is to develop a market that would offer only electronic payment services (eSEPA: e-payments and m-payments).

The goal of SEPA:

to facilitate the convergence of Europe through the competitive and innovative market of retail payment services in the euro area, which offers better service quality, more efficient products and less expensive payment opportunities;

to guarantee all people and corporate entities in the European economic area simple, fast, safe and less expensive payment solutions, which are available by having just one bank account and payment card in the user's home country.

Eesti Pank's tasks in developing SEPA:

to assess the implementation of SEPA's payment instruments and, based on this, foster their development;

to participate in the national working groups of the European Payments Council (EPC);

to arrange discussions and events related to SEPA;

to participate in the domestic planning and arrangement of SEPA-related communication;

to create a decision-making and feedback system that is necessary for the implementation of SEPA and involves all parties;

to increase awareness of the payment instruments and advantages offered by SEPA.

General organisation of SEPA on the European and Estonian level:
On the European Union level, the implementation, planning and monitoring of SEPA is the responsibility of the European Payments Council (EPC) that was established by the European Commission and the European Central Bank. The EPC has enforced plans, frameworks and standards necessary for the operation of SEPA.
In Estonia, the implementation of SEPA is managed by banks and the Estonian Banking Association. Eesti Pank participates as the settlement systems' manager, regulator and facilitator; the Ministry of Finance and the Riigikogu participate as the legislative authorities.

References:
Read more from the website of the European Central Bank
Read more from the website of the European Payment Council