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SEPA-components:

SEPA-components:. Cash Payments. Vision of European Commission in NLF (version 1.12.2005: grounds and objectives of proposal). As cash is an expensive payment service electronic payments are considered as an alternative to expensive cash then

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SEPA-components:

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  1. SEPA-components: Cash Payments

  2. Vision of European Commission in NLF (version 1.12.2005: grounds and objectives of proposal) • As • cash is an expensive payment service • electronic payments are considered as an alternative to expensive cash • then • the use of the most cost-effective services in stead of cash can help realise the objectives of SEPA(efficient, secure, cheap payment system to the benefit of the users)

  3. Bank’s vision for cash in SEPA • As is: • cash remains the most popular payment instrument for small amounts (in eurozone: 360 billion cash transactions and 70 billion non-cash), yet amongst the most expensive payment instrument to operate • the provision and treatment of cash is significantly different between the countries due to local regulations and ‘national traditions’: distinct level of costs of cash per country • the competition between cash and the other payments instruments is disturbed by the invisibility of the cost of cash to the users and by imperfect externalisation of the cost of cash to actual users partly caused by local regulations SECA is essential

  4. Bank’s vision in Single Euro Cash Area • SECA components: • creating an euro which is also the single currency for banks and professionals • by harmonisation of the core cash services provided by Eurosystem NCBs (level playing field): network coverage, operational conditions, charging principles • by the removal of legal barriers preventing an effective cross border cash service provision (transport)

  5. Bank’s vision in Single Euro Cash Area • SECA components: • reducing costs of cash: • by applying the best practices for the distribution and recycling of euro cash in the Eurozone (p.e. shortening the cash cycle) • by the development of common standards at Eurozone level (packaging, transportation, banknotes staining, recyling etc) • by stability in the framework imposed by authorities (NCB’s , …) • enabling fair competition among the payment instruments

  6. Incoming Recycling Recycling Recycling Fit+unfit Fit+unfit Fit+unfit Fit+unfit Outgoing Unfit Unfit Belgian Cash Cycle / Chain: euronotes Central Bank Commerc.Banks (branches, cash centres) CIT (transport, cash centres) Customers (consumers, shops) Counting Sorting Packing Re Issue Destruction Counting Sorting Packing Counting Sorting Packing Counting Sorting Packing

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