Single Payment Area Research Articles

The single payment area of financial markets in the EAEU: Organizational challenges

Subject. This article explores the issues related to institutional and financial relations within the integration of financial markets in the EAEU countries on the basis of a single payment area. Objectives. The article aims to develop proposals to arrange a single payment area in the regional integration association of the EAEU. Methods. For the study, I used the general scientific knowledge techniques and examined financial and foreign trade statistics and reviews of the Eurasian Economic Commission, and statistical databases of the World Bank and International Monetary Fund. Results. The article presents proposals to include a new mechanism for building a single payment area in the system of cooperation within the framework of harmonization of financial markets in the EAEU, which is to unite the processes of target setting and building a common format of activities in the field of financial regulation and a single payment infrastructure arrangement. Conclusions. The proposed organizational mechanism for the integration of financial markets in the EAEU can help prepare the financial systems of the EAEU countries for integration and implement it in the most effective way.

The Model of Creation of the Single Payments Area within the Eurasian Economic Union

The article considers the theoretical model of the creation of a payment bank of the Eurasian Economic Union. The validity of the creation of an issue bank, which at the same time can carry out the functions of a macroregulator of the Eurasian Economic Union, has been stated and proved. The necessity and economic feasibility of creating the union’s own digital fiat currency is substantiated. This will significantly reduce the sanctions pressure on Russia exerted by the United States, releasing Russia's economy from dollar dependence. Clearing based payments can be effected by means of a blockchain.

Implementation of Common Agricultural Policy provisions on direct payments

The concept of "common policy" faithfully reflects one of the defining features of the Common Agricultural Policy. Currently, CAP is built around two pillars: Pillar I- Agriculture and Pillar II- Rural Development. The main way to support agriculture is represented by direct payments. The Regulation (EU) 1307/2013 establishing rules for direct payments to farmers during the programming period 2014-2020 provides uniform payment schemes applicable in all Member States. Some of these schemes are compulsory (such as basic payment scheme or single payment area; payment scheme for farmers using agricultural practices beneficial for the climate and environment), others are optional, leaving it to countries if they want to apply these schemes or not. The proposals for payment schemes applicable in Romania during the period 2015-2020 are: Single Area Payment Scheme (SAPS); Payments for Agricultural Practices Beneficial for the Climate and the Environment; Redistributive Payment; Payments for Young Farmers; Transitional National Aids and Simplified Scheme for Small Farmers.

The Impact of EMU on Member State Sovereignty

It is generally accepted that European Economic and Monetary Union (EMU) involved a transfer of some sovereignty from Member States to the central organs of the European Union (EU). The various aspects of EMU and of sovereignty are considered in detail in this paper. EMU can be considered both as an aspect of the European Community’s continued progress towards a common market as well as a stand-alone integration project. EMU encompasses the single currency, common monetary policy, establishment of the European Central Bank (ECB) and the implementation of a single payment area Europe-wide. This paper examines to what extent the implementation of each of the three elements of EMU have involved the transfer of sovereignty. It does this in particular by comparing the experience of the United Kingdom and Germany.

The role of the Single Euro Payments Area for the potential single European market

The creation of Single Euro Payments Area (SEPA) is the next stage of economic integration of Europe connected with clearings and payments area. The idea behind the activities within SEPA programme is the introduction of mechanisms for effective Euro payments in Europe and treatment of this area as a single market with all the consequences to do with the time of transaction and charges occurring. According to SEPA, different local solutions will be replaced by a common payment system and unified standards regulated by homogenous consumer law. This in turn shall bring in the following effects: easy, fast, safe and cheap payments for the whole European market. This article shows the conditions of implementation of SEPA programme and the consequences stemming from the single payments area.

An Economic Analysis of the Single Euro Payments Area (SEPA)

Under which conditions is it advantageous for countries to form a single payments area? This question is analyzed in a model of spatial bank competition to understand better the economic foundations of the Single Euro Payments Area (SEPA). An economic research perspective on the mostly informal policy debates about SEPA is developed. The analysis suggests that expectations about the positive effects of SEPA may be exaggerated as most channels for enhancing public welfare seem rather weak. Still the project may be worthwhile undertaking if the cost of creating SEPA-compliant systems is reduced by extending the time frame for the implementation phase and if the use of electronic payments is promoted.

Will We Pay the Same Way? Empirical Evidence of Payment Behaviours Convergence on Emu Panel Data

The purpose of this study is to analyze the observed changes in payment behaviours by underlining the influence of factors such as financial opening, regulations and technological innovation. We show how forces acting in order to mould the national retail banking markets into a Single Payment Area (SPA) within the European Monetary Union (EMU) have impacted the payment instruments demand. We analyse the integration process and measure the importance of its major steps by testing the convergence of payment behaviours. We develop a model of conditional convergence concerning the use of five payment instruments: cash, card, cheque, credit transfer, and direct debit. The tests of conditional convergence are carried out using the techniques of instrumental variables on annual panel data in EMU. The results demonstrate that convergence occurs on demand for all payment methods except cheque.