EU payments reform good for consumers

4.05.21pm UTC (GMT +0000) Fri 27th Apr 2007

A key European Parliament report on legislation for payment services that is set to make cashless payments such as card transactions, bank transfers and direct debits simpler and cheaper, has been overwhelmingly backed today in Strasbourg.

London Liberal Democrat MEP Baroness Sarah Ludford commented:

"This legislation will be of great benefit especially to small business and individual customers. It will make it easier for non-bank payment providers to expand and compete with banks both within the UK and across Europe, resulting in lower prices and greater efficiency for all users."

The legislation, covering all EU nations and currencies, sets out a legal framework for the implementation of the Single European Payments Area (SEPA) and will make cross-border payments - by credit card, debit card, electronic bank transfers and any other means - much easier and safer, giving consumers new guarantees of protection should something go wrong.

Sarah Ludford added:

"By 2012 consumers will also have the added assurance that an electronic payment will be made within 24 hours or 48 hours if made in paper. Currently, people often have to wait up to 7 working days to complete a transfer to another European country."