The impact of SEPA in credit transfer payments: evidence from the euro area

This paper analyses the effect of the implementation process of the Single Euro Payments Area (SEPA) project on credit transfer payments in euro area countries during the period between 2008 and 2013. Using both univariate and multivariate fractional regression models, we found that, when controlling for socio-demographic, economic, technological and institutional factors, the progress in the migration to SEPA formats had a relevant positive impact on the share of payments made with credit transfers. Our results provide for the first time empirical evidence of the direct effect of the implementation of SEPA on payment habits and set the basis for the discussion of some of the possible implications of payments digitalization from both economical and societal perspectives.