The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

One STEP closer for cheaper euro payments

The concept of cheaper cross-border euro payments is moving a step closer as a further 14 banks from the EU join the STEP2 programme as direct participants. The programme, created by the European Banking Association (EBA) as a pan-European clearing house, hopes to have more than 300 banking members by 2005: the year-end figure for 2004 will stand at 81. The STEP2 system processes around 110,000 payments every day and provides payments distribution to all banks operating in Europe's main financial hubs. Commission on cross-border trades previously stood at around ?24, but the system reduces costs per trade to less than ?0.5 on many transactions.


?STEP2 is the first development along the route to a pan-European ACH service. As we go along the route we'll develop a more efficient service and a cheaper service with flexibility to add on other pan-European services," explains Linda Smith, head of payments industry management and strategy at HSBC. "Having made that first step most banks think that European single payments must develop a lot further."


Corporates, so far, have played little part in the development of the programme, though arguably, will prove the main beneficiaries of cheaper cross-border costs.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree