SEPA payments, one of the most common payment methods today, are an infrastructure that enables payments primarily in Europe. Payments are made in euros through SEPA, or the Single Euro Payments Area, tools.
Asset transfers are typically made between recipients within SEPA countries. These countries can manage their transfers quickly and efficiently thanks to SEPA payment solutions. In modern financial ecosystems, both traditional payment methods and digital tools are used together.
One of the asset transfer methods frequently used by businesses from various sectors and individuals with different income groups is SEPA direct debit solutions.
One way for businesses to reach potential customers in different countries and increase financial profitability is to have a digital infrastructure suitable for cross-border payments. One of the most practical solutions for this is to utilize SEPA payments.
Join us in this blog as we explore what an SEPA payment is, how it simplifies euro transfers, the benefits it brings to both consumers and companies, and what you should know before making one.
By the end, you will understand how SEPA is making European payments faster, cheaper, and more efficient than ever. Let’s start to explore in detail!
What Is SEPA?
When individuals in the financial world who lack sufficient knowledge and experience with these innovative payment methods ask, “What is SEPA?” The simplest answer might be, “It’s a payment method that enables asset transfers within the Eurozone.”
SEPA transfers generally utilize solutions that simplify both parties, making it a frequently preferred payment method. The key difference from other payment methods is that this payment method uses the EURO currency.
More Key Details on SEPA
Traditional banking instruments are insufficient to effectively meet financial needs at a time when digitalization is so widespread across every sector. Therefore, agreements or some deals are being signed to enable the transfer of digital assets between various countries.
SEPA payment method allows for highly liquid payment solutions in euros. If you personally transfer assets to a recipient in another country using traditional banking tools, or if you, as a business, manage to receive payments from a customer in another country, the process will be lengthy and you will incur high transaction fees.
However, thanks to Single Euro Payments Area solutions, your transfer is completed in EUR within a maximum of one business day. This advantage makes SEPA tools preferred by many e-commerce participants, businesses, and individual investors for transactions in these countries.
SEPA is a special payment network offering solutions not only for European Union countries but also for major markets in the region, significantly reducing transaction costs. Both individuals and businesses can easily utilize these tools.
SEPA Countries List
Although SEPA is a Euro payment network, it is not a payment method available only in countries using the Euro. The SEPA countries list includes a total of 36 countries. The Single Euro Payments Area (SEPA countries) covers most European Union members.
Additionally, it is possible to easily make and receive SEPA payments in Northern European regions like Norway and Switzerland. The countries where the SEPA payment method is used can be summarized as follows:
- European Union countries
- Iceland
- Liechtenstein
- Andorra
- Monaco
- Norway
Although this payment network stands for “Single Euro Payments Area,” it provides a wide range of services, providing convenient service not only to European Union countries or countries using the euro currency, but also to a wider range of countries.
Thanks to the Single Euro Payments Area, businesses can securely manage their business operations thanks to the highly liquid currency of the euro.
Participants from every sector benefit from SEPA payments. The most common sectors where SEPA payments are utilized are:
- SEPA transfers are used in banking and finance.
- Leading participants in the e-commerce sector.
- Telecommunications companies use SEPA direct debit tools for bill collection.
How Does SEPA Work?
The SEPA transfer process may seem complex at first glance. However, thanks to today’s digital banking solutions, it’s quite easy and efficient. First, the IBAN addresses of the sender and recipient must be determined.
Unlike traditional banking methods, the process after this step proceeds through the SEPA network. This ecosystem allows for shorter transaction times and eliminates the time-consuming protocols of traditional banking. SEPA transfers generally take no longer than one business day.
Furthermore, thanks to the “SEPA Instant Credit Transfer” service offered on some platforms, asset transfers can be completed instantly in EURO.
While traditional payment methods offer no problems with speed and flexibility for transfers within the same country, managing various financial processes, such as individual asset transfers between different countries or accepting payments from businesses, presents many challenges.
If you prefer to transfer assets to various countries utilizing traditional banking tools instead of SEOA, you will encounter high transaction fees and time constraints.
However, thanks to digital payment networks like SEPA, it is possible to transfer assets between different countries quickly, with low transaction costs, and securely.
In today’s markets, many companies and individual investors benefit from SEPA payments due to the following opportunities:
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Low transaction fees
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Fast processing
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High level of security
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Standard IBAN address
Differences Between SWIFT and SEPA
While SEPA is a payment network focused on European and EUR currencies, SWIFT functions for all currencies and destinations. SWIFT remains one of the most preferred methods for asset transfers in both traditional banking and digital finance ecosystems.
While SEPA payments are managed only between a list of SEPA countries, SWIFT allows senders and receivers from different parts of the world to interact. However, it is known that SEPA has lower transaction fees.
The most critical differences between SWIFT and SEPA can be listed as follows:
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SEPA is only valid between SEPA countries.
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SEPA uses the EURO, while SWIFT accepts all currencies.
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SWIFT can sometimes have high transaction fees and limitations.
Those who do not want to experience these disadvantages in the financial management of their businesses are interested in digital banking solutions. One of the key features that makes this payment method so popular is the use of a standard IBAN number. This is crucial for businesses to maintain their corporate identity.
Benefits of SEPA Payments
Many businesses from various sectors prefer to manage their finances with SEPA payments because they can transfer assets between different countries quickly and flexibly with a single IBAN address.
For example, if a German-based business wants to pay a supplier in France, the process can take days when managed through traditional banking methods. Furthermore, high transaction fees add to the potential costs.
However, with SEPA payments, they can typically complete the transaction within one business day and with very low transaction fees. For global businesses, efficiency significantly impacts profit margins, considering the constant cross-border transactions. The most critical benefits of SEPA payments in today’s market conditions can be listed as follows:
- Time savings due to the short SEPA transfer time.
- Lower transaction fees and commission rates compared to other traditional payment methods.
- Using a single, standard number for SEPA countries instead of different IBANs in each country.
- Access to automatic payment services such as SEPA direct debit.
- Reaching the high liquidity of the euro.
It is possible to maximize the benefits of SEPA payments through reputable and reliable digital banking platforms and digital wallet providers like Jeton.
How to Set Up a SEPA Payment?
To make a SEPA payment, you may need a digital wallet account like Jeton that is compatible with this payment method. This will allow you to manage the process more quickly and easily.
If you have an account on a reputable and reliable digital payment platform, you can benefit from services like SEPA transfers and SEPA direct debits. The process consists of the following simple steps:
- Opening an account on a digital banking platform
- Obtaining IBAN information
- Confirming the transaction through the digital finance platform
Unlike regular transfers, the SEPA direct debit process requires written authorization from the sender.
One of the reasons for the popularity of this payment method is that, unlike SWIFT methods, the network operates on a single standard, rather than requiring different IBAN strings for each country. The following user groups benefit from this payment network:
- Individual users: It can be used for individual payments such as bill payments.
- SMEs: It is used for commercial transactions with suppliers.
- Public institutions: Even government offices may choose this method for payments to representatives in Europe.
Especially for small and medium-sized businesses, using these types of payment networks greatly reduces the potential cost of constant cross-border payments.
What Will You Need for a SEPA Payment?
To successfully manage a SEPA transfer, you need the following elements:
- A valid IBAN number in all countries within the network,
- The names of the sender and recipient,
- In some special circumstances, a BIC or SWIFT code may be required.
- The transfer amount,
- A reference number or transaction description.
These simple elements are sufficient to maximize the benefits of the SEPA payment method. The SEPA payment process works as follows:
- First, the transaction is initiated via a mobile app or API.
- The IBAN entered by the sending account is verified as compatible with the SEPA infrastructure.
- If the transaction is not in EUR, it is rejected.
- The bank converts the transaction into a transaction order in XML format.
- The payment network verifies the message, and if there are no problems, it is credited to the recipient’s account.
- The process is managed entirely digitally.
Managing this process with a payment network with an advanced digital infrastructure like Jeton makes the process even more convenient. You can transfer assets or accept payments in EUR to any country in seconds.
How Long Do SEPA Payments Take?
SEPA transfer time may vary under certain circumstances, but generally, they don’t exceed one business day. A business in France can receive a SEPA transfer from a customer in Portugal within one business day.
Unlike other international payments, SEPA payments are completed within 1 business day. In fact, in some cases, when the payment order is placed in the morning, the transfer is completed the same day.
Thanks to the SEPA Instant Credit Transfer service offered by advanced digital payment networks like Jeton, transfers can also be completed instantly. You can meet your global financial needs flexibly and quickly, without time constraints such as weekends or public holidays.
In modern times, with developed digital banking tools, mobile applications can be sufficient for these types of cross-border payments. From any customer profile or any sector, all businesses can utilize these tools by using just a mobile phone.
Do I Need a SEPA Account for My Business?
If you want to reach potential customers in SEPA countries or make flexible asset transfers with your suppliers in these countries, you should definitely open a SEPA account for your business. This account allows you to benefit from the following services:
- Regular collections are possible thanks to the SEPA direct debit service. This service is highly effective for subscription-based business models.
- Financial needs are managed periodically with suppliers at lower transaction costs.
- Using a single standard IBAN enhances your corporate identity, even when transferring to different countries.
Businesses serving in areas such as e-commerce, import, and export should definitely open SEPA accounts with digital payment providers like Jeton. If you want to get this global financial management flexibility for your business, Jeton is here for you. With Jeton, you can enable your business to financially interact with the SEPA Countries.
Should Non-SEPA Businesses Open a European Bank Account?
If, while managing your business, you discover that your customers or suppliers are located outside of SEPA countries, you may still need to open a SEPA account. This is because SEPA provides significant flexibility for the cross-border transactions that businesses selling in the European market require regularly and frequently.
The increased efficiency and flexibility of at least some of these global financial needs contribute to operational efficiency to a certain extent. Opening an account for SEPA payments doesn’t require a business to conduct all its transactions through this method.
However, if they need to conduct financial transactions with suppliers or potential customers in a country listed among SEPA countries, they may consider this method. Choosing the right partner for such payments is key, as it ensures not only speed but also security and convenience.
With Jeton, making transfers across Europe is simple, secure, and hassle-free. Whether you need the Jeton Wallet for instant payments or the Jeton Card for everyday spending—both online and offline—Jeton gives you full control over your finances.
Open your Jeton account today and experience how effortless payments can be. Download the Jeton App on the App Store or Google Play and start enjoying smarter, faster, and more secure financial freedom!
