Bruxelles 14.03.2005 jean allix 1

Using the euro abroad : cross-border issues

Jean Allix DG Internal Market and Services. European Commission

Bruxelles 14.03.2005 jean allix 2

01/01/2002 : Birth

Bruxelles 14.03.2005 jean allix 3

€ 70.6 %

N€ 29.4%

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Number of transactions per inhabitant: Total for 2002

218211 207

192

173167

146140

130 128 126120

106 104

74 73 69 67 6354

4235 34

2317 16

8

0

50

100

150

200

250

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Institution

originatorBeneficiary

Institution

Border

Credit transfer

cardcheque

Direct debit

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1,7%

34,6%

46,9%

9,8% 7,00%

Cheques Paymentsby

credit/debitcards

Credittransfers

Directdebits

Card-basee-money

Belgium 2002

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34,2%

30,6%

18,7%16,3%

0,10%

Cheques Paymentsby

credit/debitcards

Credittransfers

Directdebits

Card-basee-money

France 2002

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13,8%

29,6% 30,1%26,7%

0,7%

Cheques Paymentsby

credit/debitcards

Credittransfers

Directdebits

Card-basee-money

EURO AREA 2002

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Fees for 100€

(EUR 12)1993

(EUR 12)1994

(EUR 11)1999

(EUR 11)2000

(EUR 15) 2001

24,09

17,37 17,1

25,41 23,93

Excell

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Genova

Palermo

Nizza

Domestic ?

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border

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After the single market

After the single currency

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U n minis tre par E tat membre

Organede

déc is ion

A dopte ouamende

les propos itionsde la Commiss ion

19/12

2001

14 for, 1 against14 for, 1 against

Regulation 2560/2001

JOCE L 344

28/12/2001

Regulation 2560/2001

JOCE L 344

28/12/2001

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Article 1• Subject matter and scope

• This Regulation lays down rules on cross-border payments in euro in order to ensure that charges for those payments are the same as those for payments in euro within a Member State.

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Cross-border or nationalarticle 3

• Payment by card01/O7/2002

• Credit transfer01/07/2003

• Withdrawal in ATM01/07/2OO2

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Card :networks

Acquirer

CardholdersMerchant

shop

Issuer

VisaMastercardSinsys

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Number of transactions per inhabitant:Payments by credit/debit cards 2002

94 94

79

7369 67 65

6058

45 45

37 35

25,3 25 24 2218 16

7 6,8 5 4,8 4 4 3,3 3

0

10

20

30

40

50

60

70

80

90

100

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Credit transferBank 1

Bank 2MT 103+

IBAN+BICIPI

IBAN

IBAN+BIC

IPI ?

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Number of transactions per inhabitant:Credit Transfers 2002

102

78 78

66

59

50 49

42 41 40

34 33 31 3027

1713 13

10 10 107 6 6

0,9

41

50

0

20

40

60

80

100

120

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Payment service provider

Payer Payee

Payment service provider

Border

contract ?(mandate)

Contract? (mandate)

DIRECT DEBIT

Payment order Initiated by the payee

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Number of transactions per inhabitant: Direct Debit 2002

58

54

43

3936

33 33

2927

20

1613 12 12

10 10 10 9 9

5 4,84

1 1 1 0,2 0,070,060

10

20

30

40

50

60

70

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Number of transactions per inhabitant:Cheques 2002

0 0

75

40

33

2825

2320 19

9 8

4 3 2 2 1,5 1 0,9 0,2 0,1 0,1 0,030,030,030,020,010

10

20

30

40

50

60

70

80

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COMMUNICATION FROM THE COMMISSIONTO THE COUNCIL AND THE EUROPEAN PARLIAMENT

concerning a

New legal Framework for Payments in the Internal

MarketCOM(2003) 718

December 2003

http://europa.eu.int/comm/internal_market/payments/framework/communication_en.htm

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Why a New Legal Framework ?

• internal Market for payments : harmonisation• efficient and secure payment means and

systems (new technologies)• consumer confidence in all means of payment• fair competition and level-playing field• the efforts of the industry: SEPA (EPC works)• Competition between payment instruments

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Transparency

Consumer protection

Security

Competition and level-playing field

Internal Market:No-discrimination

Efficiency

Fight against terrorism

OUR/ BEN/SHARE(14)

Execution time (15)

Information requirements(2)

Value dates(4)

Legal certainty

Refund in case of non-delivery(11)

ADR (9)

Unauthorised transactions(13)

Non/defectiveexecution(12)

Portability (5)

Customer mobility(6)

Right to provide payment services (1)

Revocability(10)

Direct debiting(16)

FATF SR VII(8)

Data protection(18)

Evaluation of security of payment instruments (7)

Digital signature (19)

Security of networks(20)

Breakdown of payment network (21)

Non-resident accounts(3)

Cash circulation (17)

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Mobile payments

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Payment Service Provider

Payer Payee

Payment Service Provider

ACH

Payer Psp

Payee Psp

Relationships

Self regulation

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questions

jean.allix@cec.eu.int

http://europa.eu.int/comm/internal_market/en/payment/index.htm