Just three per cent of UK organisations have migrated or are in the process of migrating to SEPA direct debits. This compares with 42 per cent of organisations in Germany and 35 per cent in France that are already making the transition.

According to a study released by Steria, in collaboration with Edgar, Dunn & Company (EDC), one in five European businesses issuing debits is unaware of SEPA direct debits. The report, based on a survey of 300 businesses with 250 to 5,000 employees in France, Germany and the UK, shows that organisations risk missing out on the benefits of migrating. More than 60 per cent in the UK have not started to work on migration to SEPA at all, compared to 30 per cent of French and German businesses.

Despite this, 54 per cent of European businesses agree that the scheme will generate more benefits than disadvantages to organisations. The study found that a quarter are considering working with external payment partners to help them to migrate adequately. Jean-François Mansart, head of the group advanced payment practice at Steria, comments: “Organisations that view SEPA as merely a compliance burden are missing a trick. Smart companies will take SEPA as an opportunity to optimise their cash management systems and processes and reduce fraud and bad debt. But they need to allow themselves adequate time to prepare to avoid potentially costly errors and to ensure that the benefits outweigh the costs of migrating.”

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