SEPA direct participation:
key regulations and impact on financial institutions
key regulations and impact on financial institutions
1 July 2025
As of 2026, a number of regulatory and policy changes have reshaped the landscape of participation in SEPA schemes.
The most notable shift: payment institutions and electronic money institutions (PIs and EMIs) can now pursue direct participation in SEPA payment systems – a possibility previously reserved solely for credit institutions.
This change has led to a cascade of updates, which are collectively not only redefining technical and operational standards, but also raising new strategic and competitive considerations for all types of financial institutions.
1. A reminder on SEPA Participation models
There are two models for accessing SEPA schemes: direct and indirect participation.
- Direct participants connect directly to a clearing and settlement mechanism (CSM) and typically hold a settlement account with a central bank.
- Indirect participants partner with a “sponsor” bank, a credit institution which is itself a direct participant and provides access to the SEPA schemes while handling settlement on their behalf.
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