After the introduction of the Single Euro Payments Area (SEPA), banks will be hit with the payments revenue loss as the need for cross-national payments possessing is reduced.
As well as this, banks must update payment processing methods in order to comply with Single Euro Payments Area standards. According to the report around 40% of transactions currently fall significantly short of these standards.
Another SEPA target is to move towards non-cash transactions. However, the report suggests that movement away from cash transactions is very slow. The report shows that non-cash payments are becoming increasingly popular in some countries, specifically France, Germany, Spain and the UK, but this trend is not replicated in other Euro zone countries.
An overview of the report published on the CapGemini website read: We expect that the road to implementation and migration will not be easy. For instance, our analysis shows that conversion to SEPA is not a trivial exercise considering the existence of significant gaps between the SEPA requirements and the legacy of existing national practices.
