NMa consults market on introduction of Single Euro Payments Area

The Netherlands Competition Authority (NMa) has invited businesses, branch organisations, consumer organisations and the academic community to respond to questions entertained by the Authority on the subject of the introduction of SEPA, the Single Euro Payments Area. The Netherlands will become part of a large, single European payment market, from which the distinction between domestic and foreign payments will have disappeared. Similar coins and identical banknotes have been in use throughout the thirteen EU Member States which have adopted the Euro. As from 2008 and 2010 respectively (the prospective dates for the realisation of SEPA), credit transfers, direct debits and payment cards in Euro will also be effected on the basis of the same specifications throughout the EU, thus ensuring that both cash and cashless payments in Euro can be made across Europe as if they were domestic payments. Cross-border competition is set to reduce payment costs through economies of scale and a more efficient use of payment methods.

SEPA is a European project. Among initiators are the European banks, as united in the European Payment Council (EPC), a formal body for reaching agreements on SEPA. Alongside, the Dutch banks meet separately to discuss the implementation of SEPA in the Netherlands. As to agreements reached within these bodies, it is of great importance to guard against possible anti-competitive effects. Agreements among banks must not go beyond what is strictly necessary. Price agreements, market sharing and product restrictions are prohibited on the basis of the Competition Act. By means of this consultation, the NMa aims to examine whether SEPA poses possible risks to competition, depriving consumers of its benefits.


The consultation document extensively deals with important issues relating to deadlines for the replacement of national payment products (such as PIN) by international payment products, and the behaviour of market parties. Also, the NMa consults on a number of aspects which have received political attention in the past few months. The implementation of the so-called 'liability shift', for instance, is an item for consultation. It denotes the passing on of the fraud risk of payment card payments transactions from banks to retailers. The NMa also highlights the effects of the introduction of the EMV-chip (enhancing the safety of payment card transactions) for the successful Dutch PIN-card.


Please download the consultation document 2008. We would kindly ask you to submit your response before 14 December.