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SEPA takes a back seat as VocaLink realigns its priorities
VocaLink announces phased withdrawal of its Euro CSM and SEPA value-added services as it refocuses its global strategy on real-time payments.
In a major setback for the doomed SEPA project, UK 's VocaLink announced that it will make a phased withdrawal of its Euro CSM and SEPA value-added services as it looks to realign its global business strategy.
Marion King, CEO, VocaLink said, ‘Whilst SEPA has been a positive development for Europe, volumes remain comparatively low. As a result, we have decided to realign our global products to reflect our customers’ current priorities around immediate payments. VocaLink is committed to providing robust and innovative payments services that meets market demand and the commercial needs of our customers.’
Following a strategic review of the global payments market, VocaLink has created a Global Transaction Services team to deliver the innovations required by today’s evolving payments industry. Under the leadership of Marc Terry, managing director of Global Transaction Services at VocaLink, the team will deliver a wide range of services to global customers and partners through its unique real-time payments expertise and leading presence in clearing and switching.
Commenting on the new division, Marc Terry at VocaLink said, "We have conducted extensive international research into the payments needs of our customers as well as the typical consumer which we will be sharing at this year’s Sibos conference. Overall, there is a widespread desire to move towards immediate payments. As the experts in this technology, VocaLink is best placed to support this innovation and assist our customers and partners in the delivery of next generation payments services."
VocaLink gained experience of real-time payments following the launch of UK Faster Payments, which enables low value payments to be processed within the space of a few hours. SEPA Credit Transfers, on the other hand, can take a maximum of three working days for a beneficiary to receive payment.
Banks and clearing and settlement mechanisms invested heavily in providing SEPA services, however, to date, SEPA Credit Transfers account for just over 9% of all transfers in the eurozone and SEPA Direct Debits, account for less than 1%.