How to connect to SEPA SCT payments?

2018-06-18
How to connect to SEPA SCT payments?

How to connect to SEPA payments? This is the one of the hottest topics for the payment companies.

This question mostly arises within start-ups communities, but still has interest among matured FinTech companies as well. In this article I will introduce how to get SEPA Credit Transfer (SEPA SCT) integration.

SEPA enabled FinTech companies (who has Payment Institution, Electronic Money Institution or Banking license) to transfer money in Eur to bank accounts in the SEPA zone. This solution saves time and money to money transfer companies. One special moment – all payments must be done in Euros.

  1. Have you gained the payment service provider license from one of the EU countries?

If you want to make SEPA payments, your company/start-up needs to have valid license from one of EU countries. I recommend gaining this license from Bank of Lithuania. There are several reasons to do so:

  1. Really fast licensing procedure: it takes 2-3 times faster than in UK to get license from the Bank of Lithuania.
  2. Full support and care for your success: Lithuania is very keen to grow FinTech community and government supports your way to setup Fintech company.
  3. Great pool of IT specialist, many different service providers and nice surroundings to relax after hard day at work.
So, what are the main steps to get license for Payment Institutions or Electronic Money Institution?
  1. Contact with Bank of Lithuania about your aims to get license. E-mail: info[at]lb.lt
  2. Contact the law firm. We recommend two well know companies in Lithuania: Ecovis , Magnusson. They will provide all information about procedures and steps to establish entity in Lithuania.

2. Choose your SEPA integration provider

First and more confusing option is to create integration by yourself. To be honest, for us it took to half a year to analyze and create SEPA integration solution. If you are an experienced and well-organized team and have enough time – go for it. But if you are working in countries like Germany or France, you will have to obtain access to communicate with your bank’s EBICS server. Depending on the bank’s existing infrastructure and processes, the development of such a solution can take some time.

Second, and more comfortable solution – to get it from JSC Baltic Banking Service. Our company do have ready-made solution for SEPA payments for any licensed payment business.

We are very proud of http://www.sepagateway.eu solution, which is already tested and used among several European companies.  We can provide SEPA connection in two options: WEB API or WSDL (Web Services Description Language).

3. TEST your SEPA payments integration 

Some companies already have their SEPA integration to CENTROlink system, but they need to test it. Same step is included in our services for our clients. This is the last step to do before going live. 

System must be tested and gain trust from the Bank of Lithuania. We are happy with our experience here as we were partners to test SEPA payments for several well-known companies. 

Good luck and do not hesitate to contact us for FREE consultation!