The European Union developed an initiative called SEPA payments (Single Euro Payments Area), which sought to facilitate the processing of cross-border payments and collections between consumers and companies within the Eurozone that use the euro as the official currency. However, due to the development of the market and the acceleration of purchase and sale transactions (thanks to digital technology), the need arose to opt for a faster payment system, which gave rise to SEPA Instant payments. The following are the main benefits that this payment system offers to companies:
Real-time transactions
Although the development of SEPA payments provided excellent support for the growth of the European market, we should note that transactions with this means of payment are made in batches and within a specific time (generally at the end of the working day); this is where SEPA Instant stands out, as this payment method allows companies to make or receive payments in “real-time” or within seconds, both nationally and internationally between Eurozone countries, which is beneficial for companies that need to make urgent payments or manage their cash flow more efficiently.
Liquidity
In a dynamic market that demands a high consumption of services, products, or raw materials, companies must have financial liquidity. SEPA Instant enables real-time transactions, which are not only approved in seconds but also become “effective” immediately, allowing companies to access payments received thanks to the immediate settlement of the transaction. By being able to make instant transfers, companies can optimize their liquidity and better manage their cash needs, which reduces the need to request external support (through financing or credit) to meet their payment obligations, as well as having the possibility of speeding up invoice payment processes, thus reducing the possibility of falling into a state of default with their suppliers.
Compliance with standards and regulations
Companies need to be able to comply with the various standards and regulations established in their industry, as compliance with these regulations ensures that customers can receive high-quality products and services, which in turn can enhance the company’s reputation. SEPA Instant complies with various European Union standards and regulations for electronic payments, which facilitates regulatory compliance for companies operating in the European Union. It is important to note that regulations usually aim to keep consumers safe from deceptive business practices, unsatisfactory service, or defective products.
24/7 availability
Businesses need to have a payment method that is operational at the right time. SEPA Instant allows companies to have a 24/7 payment system (available 24 hours a day, seven days a week), thus providing greater flexibility and accessibility to companies that have irregular schedules or operate on a 24/7 basis.
Increased competitiveness and reduced operating costs
When a company receives/sends instant payments from its customers or suppliers, it significantly improves the customer or supplier experience, making the company more attractive compared to other competitors, as the ability to respond quickly to financial needs can make a difference to a company’s competitiveness.
By speeding up the payment process, SEPA Instant can also help companies reduce their operational costs, especially those related to payment delays, such as late payment interest or additional charges for late payments.
Enables access to the Eurozone Market
When a company has SEPA Instant, it can expand its market to all member countries of the Eurozone. It is important to note that today, more states (outside this zone) have adopted this payment method. Therefore, by using SEPA Instant, companies will have another alternative to expand and reach new markets.
Adapting to new consumer expectations
In a digital world where immediate gratification stands out thanks to social networks (micro-content) and instant messaging platforms, customers and suppliers expect faster transactions. Using SEPA Instant can help companies meet those expectations by adapting to new consumer expectations effectively.
What do you think about this topic? Do you want to learn more about the SEPA Instant service?
If you are interested in Pilsenga’s products or services (including SEPA Instant), you can visit our website and register on our platform by visiting the following link.
