What is SEPA?

SEPA standardises eligible euro payments across participating markets. Not all 41 countries use the euro domestically; what matters is that the payment is denominated in euro and the relevant providers support the scheme.

SEPA in one line

European payer → euro payment → SEPA scheme → receiving EUR account → beneficiary

What are the main types of SEPA payments?

SEPA Credit Transfer

SCT is a push payment. Your European customer instructs their bank to send euros to the beneficiary IBAN.

SEPA Instant Credit Transfer

SCT Inst is the instant version of a euro credit transfer.
In the euro area, current EU rules now require eligible providers to support sending and receiving instant euro payments. SCT Inst is designed to make funds available within 10 seconds, 24/7. Rollout differs outside the euro area.

SEPA Direct Debit

SDD lets the payee initiate collection after the payer has given a valid mandate.
Core and B2B variants have different rules and refund protections.

Which countries are in SEPA?

SEPA currently covers 41 countries and territories.

Coverage at a glance

Not every bank supports every SEPA scheme; institutions must adhere to the relevant scheme.

What details are needed for a SEPA transfer?

For a standard SEPA credit transfer, the payer will usually need:

• IBAN for the receiving account
• beneficiary name
• payment amount in EUR
• payment reference or invoice number
• BIC/SWIFT code where the bank or payment flow still requests it

Simple invoice payment block

Currency: EUR
Beneficiary: Your business / provided beneficiary name
IBAN: Provided EUR collection IBAN
Reference: Invoice number / customer reference

How can an Indian business receive SEPA payments?

An Indian business can use a cross-border payment provider that offers local EUR collection capability connected to SEPA.

How the collection flow works

European client receives invoice → sends EUR through SEPA → payment reaches your EUR local collection account → provider identifies/reconciles the payment → EUR is converted where applicable → INR is settled to your Indian bank account → inward-remittance documentation is generated

With PayGlocal's Multi-Currency Accounts, Indian businesses can collect locally in EUR alongside other supported currencies, with broader collections across 33+ currencies from 180+ countries. European clients can pay through familiar rails such as SEPA while the merchant receives INR settlement and inward-remittance documentation.

SEPA vs SWIFT: what is the difference?

SEPA is not automatically cheaper or faster than SWIFT in every case; cost and timing depend on the route, institutions, and currency conversion. For a European customer paying euros, however, it can provide a familiar local-style experience.

What do SEPA payments cost?

There is no single SEPA fee. Within the EU, comparable domestic and cross-border euro payments are generally subject to equal-charge rules, and eligible instant euro transfers cannot cost more than corresponding standard transfers.
Those rules do not apply identically across every non-EU SEPA country. For Indian businesses, compare the total cost through to INR settlement, including provider fees and FX.

Why verification of payee matters in 2026

One major recent change is Verification of Payee (VoP). In the euro area, providers now check the beneficiary name against the IBAN before eligible standard and instant euro transfers, helping catch mismatches and some payment-redirection scams.

What should Indian exporters check before offering SEPA?

Use this checklist:

• Can your provider give you EUR local collection details?
• Can the buyer pay through SEPA using those details?
• Who is shown as the beneficiary?
• What payment reference should buyers use?
• How are EUR funds converted to INR?
• What FX rate and fees apply?
• How quickly are funds settled?
• What inward-remittance documentation is provided?
• Can you track the payment from receipt to settlement?