Figures released by Malta’s central bank show that 23% of credit transfers were completed through the Single Euro Payments Area (SEPA)’s International Bank Account Number (IBAN) system in August.

Following the news there has been concern that companies on the island will not be able to implement changes to their credit transfer systems by the February 2014 deadline, when the 31-digit account information code will become compulsory.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The IBAN, an account identification code consistent throughout the Single Euro Payments Area (SEPA) aims to facilitate electronic payments across the area by rendering them as straightforward as domestic transactions.

Herman Ciappara, head of payments and banking at Malta’s central bank, said: "A number of the main billing companies and large employers – such as telecommunications and insurance companies, as well as the government’s social security system – are working on inputting IBANs into their IT systems, so we will see a huge leap from below 23% to around 80% as soon as they go live. But that still leaves a large number of companies that will need to absorb the IBAN."

Banks hold the longest to-do list, with most having established a framework to help their clients switch to the new system, either by providing customers with an IBAN calculator or by guiding them through the process.

Maltese banks have agreed to convert account numbers to IBANs and then return the file to the customer free of charge.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Within the SEPA group, which includes all union members as well as five non-EU countries, 2% of direct debits were found to be SEPA-compliant as of the end of June, compared with 45% of credit transfers.

 

Related articles:

Eurozone businesses must migrate to SEPA standards

A borderless world of payments

One year to go and SEPA compliance remains small