The SEPA Shake-Out: Challenges in Cards and Payments

January 2008 marks the beginning of a Single Euro Payments Area (SEPA)—a key element in Europe's desire to build an integrated EU financial market. The competition will be fierce as SEPA triggers a complete overhaul of the payments landscape and European banks struggle to compete for payment volumes. Are banks prepared to deal with this new order? A recent study by A.T. Kearney finds that banks that will thrive in this new environment have two things their rivals don't— improved efficiencies and solid "total" cost positions. Indeed, the launch of SEPA will challenge banks to restructure their costs completely.