SEPA payments: Everything businesses need to know (2026)

Key takeaways:

• SEPA (Single Euro Payments Area) is a standardised payment framework that makes cross-border euro payments easier across the 41 countries in the SEPA zone.

• SEPA can make euro payments faster and more cost-effective than legacy international payment methods such as SWIFT. SEPA Instant is also becoming the standard for instant euro transfers, with new EU rules requiring eurozone banks to offer instant payments from 2025.¹

• SEPA Direct Debit lets businesses automate recurring euro payment collection. Through Airwallex, businesses can also accept Wero, Europe's account-to-account payment solution, through a single integration.

SEPA payments make it easier for businesses to send and receive euros across Europe without relying on traditional cross-border payment methods.

The Single Euro Payments Area (SEPA) standardises euro payments across 41 countries, making cross-border transfers work much like domestic payments.

For businesses selling to European customers or paying suppliers in the region, SEPA can offer a faster and more cost-effective way to move euros.

This guide explains how SEPA payments work, the different SEPA schemes available, and how businesses can use them to collect and send euro payments.

What is SEPA?

The Single Euro Payments Area (SEPA) is a European payments framework that standardises euro payments across participating countries and territories.

It sets common rules and standards for euro credit transfers and direct debits, making cross-border euro payments work more like domestic transactions.

As of December 2025, the European Payments Council lists 41 countries and territories within the geographical scope of the SEPA schemes.² This includes all 27 EU member states, as well as countries and territories outside the EU such as the United Kingdom, Switzerland, Norway, Iceland, Liechtenstein, Monaco, and Serbia.

SEPA supports euro transactions even when a country does not use the euro as its domestic currency. This means businesses can send and receive EUR payments through SEPA with counterparties in countries such as Poland, Sweden, or the United Kingdom.

What is SEPA Direct Debit?

SEPA Direct Debit is a payment processing scheme that lets you collect payments in euros directly from your customer's bank account. It reduces the administrative burden by automating recurring transactions.

All you need is a one-time authorisation from your customer (known as a mandate) to initiate future payments automatically based on the agreed frequency and amount.

For example, your customer may authorise a €10 payment every month, which you can then deduct automatically with SEPA Direct Debit. This automation reduces manual effort, minimises delays, and creates a predictable revenue stream for businesses collecting recurring payments.

There are two types of SEPA Direct Debit schemes: SEPA Core and SEPA B2B.

SEPA Core Direct Debit

SEPA Core Direct Debit is designed for consumer transactions. It gives individuals a flexible option for everyday recurring payments, such as utility bills, subscriptions, and membership fees.

SEPA B2B Direct Debit

SEPA B2B Direct Debit is designed for business-to-business transactions. It offers a more stringent framework with additional validation checks and faster processing, making it better suited to high-value or sensitive financial transactions between businesses.

We'll cover both schemes in more detail in the section on SEPA payment processing types below.

Receiving international direct debit payments from SEPA countries

SEPA simplifies euro payments across Europe by providing common rules and standards for sending and receiving EUR. For businesses collecting payments from customers in multiple European markets, this can make payment processing easier to manage.

Standardise payment processing

SEPA uses common payment standards and formats, including IBAN and ISO 20022, which help businesses process and reconcile euro payments across participating countries.

This is useful when collecting different types of payments, such as:

• Subscription payments from customers in France

• Invoice payments from clients in Germany

• Recurring direct debits across multiple European markets

Using common standards can reduce the need to build separate processes for each country.

Make cross-border payments easier to manage

SEPA provides a common framework for euro payments across participating countries, so businesses don't need to navigate a completely different payment scheme for each market.

For businesses operating across Europe, this can make it easier to manage:

• Customer payment collection

• Supplier payments

• Recurring direct debits

• Payment reconciliation and reporting

Get clearer payment timelines

SEPA payment schemes have defined processing and settlement rules, making payment timing more predictable than some traditional cross-border payment methods.

For example, SEPA Credit Transfers generally settle within one banking business day, while SEPA Instant Credit Transfers can settle within seconds when the relevant banks support them. SEPA Direct Debit follows its own collection and settlement timelines.

This can make it easier to plan cash flow and manage when funds are expected to arrive.

How to accept payments with SEPA Direct Debit

SEPA Direct Debit is well suited to businesses that collect recurring payments, such as subscription or membership fees.

Once your customer provides a mandate, you can automatically withdraw agreed amounts from their bank account on a set schedule. For example, a streaming platform can set up monthly debits from their customers' bank accounts to minimise payment delays and errors.

Here's how to set up SEPA Direct Debit:

1. Get a mandate from the customer

The mandate should outline the payment terms clearly, including the payment amount, frequency, and the customer's right to a refund.

2. Partner with a SEPA-compliant payment provider

Work with a provider that has a payment processing system supporting SEPA Direct Debit, and can handle mandate management, settlement tracking, and reconciliation on your behalf.

3. Secure your transactions

Apply bank-level security measures such as encryption and real-time transaction monitoring to protect customer data throughout the payment process.

4. Manage and track payments in real time

Use reporting tools that give you real-time visibility into settlement statuses and failed payments, so you can act quickly when issues arise.

4 benefits of SEPA Direct Debit in low-card-use countries

In some European markets, bank-based payments are more common than cards. Offering SEPA Direct Debit alongside card payments can help businesses reach customers who prefer to pay directly from their bank accounts.

1. Lower transaction fees

SEPA Direct Debit can cost less than card payments, particularly for businesses processing high volumes of recurring transactions. Card payments may involve interchange, scheme, and processing fees, while SEPA Direct Debit typically uses a different fee structure.

2. Fewer card-related payment failures

SEPA Direct Debit doesn't rely on card details, so businesses can avoid issues such as expired cards or card limits. This can make it useful for subscriptions and other recurring payments.

3. Less friction for recurring payments

Once a customer has authorised a SEPA Direct Debit mandate, payments can be collected automatically according to the agreed schedule. Customers don't need to re-enter their payment details for each payment.

4. Reach customers who prefer bank payments

Markets such as Germany, the Netherlands, Austria, and Belgium have established bank-based payment habits. Offering SEPA Direct Debit gives customers another way to pay without requiring them to use a card.

4 types of SEPA payments

SEPA has four main payment schemes, covering standard transfers, instant payments, and direct debit. Here’s a quick overview:

1. SEPA Credit Transfer (SCT)

SEPA Credit Transfer is the standard method for sending euro payments between bank accounts within the SEPA zone. Payments are initiated by the sender and typically settle within one business day.

SCT is widely used for one-off payments such as supplier invoices, payroll, and refunds.

Key features:

• Sender-initiated transfers

• Settlement within one business day (T+1)

• Available across the SEPA geographical scope

• Best suited to one-off or non-time-sensitive payments

2. SEPA Instant Credit Transfer (SCT Inst)

SEPA Instant Credit Transfer is the real-time version of SCT. Funds are made available to the recipient in under 10 seconds, around the clock, including weekends and public holidays.

This makes it useful for time-sensitive payments and transactions where immediate confirmation matters.

Following the EU's Instant Payments Regulation (Regulation (EU) 2024/886), eurozone credit institutions became subject to phased requirements to offer instant euro payments from 2025, with additional obligations taking effect later.¹

Key features:¹

• Funds available in under 10 seconds, 24/7/365

• No scheme-level maximum transaction amount

• Subject to phased mandatory availability requirements for eurozone payment service providers

• Wero uses instant payment infrastructure and is a separate payment solution from the SEPA schemes

3. SEPA Direct Debit Core (SDD Core)

SEPA Direct Debit Core is designed primarily for consumer payments. Once a customer provides a mandate, the business can collect agreed payment amounts directly from the customer's bank account.

Key features:

• Customer mandate required before collection

• Pre-notification rules apply before the debit

• First and subsequent collections have different submission timelines

• Customers generally have an unconditional right to a refund within 8 weeks of the debit date

• Suited to subscriptions, memberships, and recurring consumer payments

4. SEPA Direct Debit B2B (SDD B2B)

SEPA Direct Debit B2B is designed for business-to-business payments. It has a stricter mandate process than SDD Core, with the debtor's bank required to verify the mandate before processing.

Key features:

• Mandate held by both the creditor and debtor's bank

• First and subsequent collections generally have a shorter submission timeline than SDD Core

• No unconditional right to refund for an authorised transaction

• Suited to B2B invoices, inter-company payments, and supplier settlements

Wero: Europe's instant payment wallet, built on SEPA

Wero is a European digital wallet launched in 2024 by EPI (European Payments Initiative), built on SEPA Instant Credit Transfer rails. It allows consumers to send and receive money instantly using just a phone number or email address.

Wero is currently available in France, Germany, and Belgium, and is growing rapidly as a checkout payment option for online merchants.

Notably, Wero replaced Giropay as the primary instant A2A payment method in Germany, making it an important method for businesses targeting German consumers in particular.

If you're selling to customers in France, Germany, or Belgium, accepting Wero can help you reach consumers who prefer bank-based instant payments over cards. Airwallex now supports Wero; read our guide to Wero for Singapore merchants to learn how to get started.

Preferred payment methods by European country

Compared to the US and UK, card use remains relatively lower for cross-border online shopping in Europe. When expanding into Europe, offering a preferred local payment method like SEPA Direct Debit can help boost conversions, build trust, and capture more customers.

The table below shows preferred payment methods when buying online from another country across France, Germany, and the Netherlands. SEPA ranks 8th overall.

Source: Statista, Airwallex

Note on Germany: Giropay, previously listed at rank 11 in Germany, was discontinued in 2024. Its position has been taken by Wero, the new instant A2A payment wallet launched by EPI and built on SEPA Instant Credit Transfer rails.

Expand into Europe with Airwallex

Airwallex helps businesses accept payments in Europe. With one integration, you can access SEPA payments and 160+ local payment methods, including Wero and Satispay. Here’s what you can do with Airwallex:

Accept SEPA and local payment methods

Accept eligible SEPA payment methods and other local payment methods through one integration. Availability varies by payment method, business location, shopper location and currency.

Settle EUR payments in EUR

Settle euro payments into your EUR account and use the balance to pay European suppliers without converting the funds back to SGD first.

Show local prices at checkout

Display prices in EUR or let shoppers view prices in their preferred local currency. If the transaction currency differs from the settlement currency, Airwallex handles the conversion for you.

Frequently asked questions (FAQs)

What are the benefits of using SEPA payments for my business?

SEPA payments let you send and receive euro payments across 41 countries in the SEPA zone. They're fast, cost-efficient, and follow a standardised framework with predictable settlement timelines, making them a reliable option for businesses collecting recurring payments or expanding into European markets.

How do I set up SEPA Direct Debit for my customers?

You'll need to obtain a mandate from your customer that authorizes you to debit euro payments from their bank account. With Airwallex, mandate collection (including authorization terms and confirmation emails) is automated, and you can initiate and reconcile debits from a single dashboard. For fully automated recurring billing on a schedule, pair SEPA Direct Debit with Airwallex Billing/Subscriptions.

What countries are included in the SEPA zone?

As of December 2025, there are 41 countries and territories in the SEPA zone, including all 27 EU member states, 3 European Economic Area (EEA) countries, and 11 non-EEA countries and territories such as the UK, Switzerland, and Serbia.²

What is the difference between SEPA Core and SEPA B2B Direct Debit?

SEPA Core Direct Debit is used for collecting payments from consumers. Submission must be made at least 5 business days before the due date for the first collection, and at least 2 business days before for subsequent collections. Customers also have an unconditional right to a refund within 8 weeks. SEPA B2B Direct Debit is designed for business-to-business payments, requires submission just 1 business day before the due date, and carries no unconditional refund right, making it faster and better suited to high-value B2B transactions.

What is SEPA Instant Credit Transfer and is it mandatory?

SEPA Instant Credit Transfer (SCT Inst) processes euro payments in under 10 seconds, around the clock.¹ Following the EU's Instant Payments Regulation (Regulation (EU) 2024/886), eurozone credit institutions were required to offer SCT Inst from 9 January 2025, with further obligations taking effect from 9 October 2025.¹ This means instant payment capability is now a baseline requirement for banks operating in the eurozone.

What is Wero and how does it relate to SEPA?

Wero is a digital payment wallet launched in 2024 by the European Payments Initiative (EPI), built on SEPA Instant Credit Transfer rails. It lets consumers send and receive money instantly using a phone number or email address, without sharing bank details. Wero is currently available in France, Germany, and Belgium, and replaced Giropay as Germany's primary instant A2A payment method. Airwallex supports Wero; read our guide to Wero for Singapore merchants to learn more.

How can SEPA help me expand my business internationally?

SEPA simplifies euro payments across 41 countries in the SEPA zone. By offering trusted local payment methods like SEPA Direct Debit and Wero, you can reduce checkout friction and drive higher conversion rates in key European markets. With Airwallex, you can accept SEPA alongside 160+ local payment methods, manage foreign exchange, and handle payouts, all from one platform.

Sources:

1. https://www.europeanpaymentscouncil.eu/what-we-do/sepa-instant-credit-transfer

2. https://www.europeanpaymentscouncil.eu/document-library/other/epc-list-sepa-scheme-countries