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More control and less work. Even in your industry.
Fast and secure invoice processing for every organisation.
Fast and secure invoice processing for every organisation
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A SEPA payment is a euro-denominated bank transfer between accounts within the Single Euro Payments Area. For UK-based businesses operating in Europe, SEPA simplifies cross-border euro transactions, making them as straightforward as local payments. On this page, you’ll find out what SEPA means for your business.
Table of contents:
The Single Euro Payments Area (SEPA) was introduced in 2008 by the European Union to harmonise euro payments across Europe. Before SEPA, international euro transactions were often slow and expensive. SEPA resolved this by standardising transfers, direct debits, and payment cards across all participating countries.
Goals of SEPA:
There are two main types of SEPA payments:
| Type | Description | Examples |
|---|---|---|
| SEPA Credit Transfer (SCT) | Single euro transfer between two IBAN accounts within the SEPA area | Invoice payment |
| SEPA Direct Debit (SDD) | Automatic debit based on prior authorisation from the customer | Subscriptions, utility bills, memberships |
SEPA payments follow a clearly structured process.
For a SEPA Credit Transfer (one-time transfer):
For a SEPA Direct Debit (automatic debit):
Thanks to SEPA, this process is consistent across all participating countries: reliable, fast and efficient.
SEPA benefits both businesses and consumers:
According to the official European Payments Council document (EPC409-09, version 7.0, published 22 May 2025), the SEPA area includes:
27 EU member states
3 EEA countries: Iceland, Liechtenstein and Norway
11 non-EEA countries, including the United Kingdom, Switzerland and Andorra
This brings the total to 41 countries. Some overseas and crown dependencies such as Guernsey, Jersey and the Isle of Man are also part of SEPA. Including these, the total exceeds 45 territories.
With Payt, you can automate SEPA Direct Debits to collect outstanding invoices faster and without manual work. As soon as a customer provides authorisation, Payt automatically initiates the debit on the agreed due date. This improves your cash flow and reduces administrative effort.
The platform gives you real-time insight into who has paid and who still needs to. This helps you stay in control of your receivables and save valuable time.
Curious about what Payt can do for your business? Download our brochure below.
SEPA Credit Transfers are usually processed within one business day. If you submit the payment before your bank’s cut-off time, the recipient may receive the funds the same day. However, it’s typically credited the next business day. Same-day delivery isn’t guaranteed, but SEPA ensures fast and reliable euro transactions.
A SEPA payment is made via bank transfer or direct debit within the SEPA area. You enter the recipient’s IBAN, the amount in euros and an optional reference. With Payt, you can automate these payments so your customer pays on the agreed due date.
A SEPA Credit Transfer is usually processed within one business day. If submitted before your bank’s cut-off time, the beneficiary often receives the funds on the same or next business day. With Payt, you can track the payment status in real time.
SEPA payment files are XML files that contain instructions in SEPA format. These are generated by your ERP or accounting software and submitted to the bank. Payt simplifies this process by generating and sending SEPA Direct Debits automatically.
Yes, but processing will only start on the next business day. Banks only process SEPA transactions on working days. With Payt, you can schedule payments in advance, so they are debited exactly on the right day—even after the weekend.
