Comment by tdi001
3 hours ago
There is already the EPC QR code, which contains all the data required to initiate a SEPA credit transfer. This code is supported by practically all banking apps (at least in Germany). The standard is public and free (see https://en.wikipedia.org/wiki/EPC_QR_code)
The merchant's system displays this code, you open your online banking app, scan the code, select "SEPA INST" (here's the usability catch!) to make the payment instantaneous, and confirm. Within 10 seconds, the money is transferred to the merchant's account. Either the merchant's bank or a third-party Open Banking API immediately informs the merchant's system (e.g. by push notification or webhook), and a receipt is issued.
Everything is already here, but since this system would be virtually free to use, nobody really has an incentive to push it. It costs money to educate the public, and there is no money to be made. Instead, everyone gets paid handsomely by the card mafia.
In general I'm all for free and European systems, but SEPA payments imo still have pain points:
- you can send money to companies and individuals alike. It's easier to trick people into fake shop payments, a card payment provider requires at least a bit it verification/registration
- it's really hard to dispute/call back sepa payments. The card companies often step in there afaik
The name of the recipient is displayed, and since last October it is also verified against the owner of the receiving bank account. The bank explicitly warns you if they differ. Also, you can't open a bank account anonymously, there is KYC.
You can't dispute or call back SEPA INST payments. But you can't dispute cash payments either. This is just fine for most day-to-day transactions, I don't need insurance when I buy groceries or pay the taxi driver.
Yea, but I think that there is still a business model, if only in consulting or building software solutions to make this easier.
The root of this evil is the deal the card companies made with the EU some 10 years ago: A cap on the interchange fees in exchange for the ban on card surcharges.
If the card processing fees could be added to the customer's bill, it would be in the customer's interest to support a cheaper/free alternative. But since card payments are "free" in the eye of the consumer, why should he be using anything but the most convenient option? And what is more convenient than just touching your card/phone to the terminal? As long as this deal stands, EU merchants will be slaves to the card companies.