Guide to SEPA Payments for UK Businesses

What is SEPA?

SEPA stands for Single Euro Payments Area. It is a payment integration initiative that allows euro-denominated bank transfers to be made under the same basic conditions, rights, and obligations across all participating countries.

In practical terms, SEPA means that sending euros from a business account in Germany to a supplier in Spain costs the same and takes the same time as a domestic transfer within Germany. There is no "international" premium for euro payments within the SEPA zone.

SEPA was created by the European Payments Council and the European Central Bank, and covers 36 countries — including all EU member states, plus the UK, Norway, Iceland, Liechtenstein, Switzerland, Monaco, San Marino, and a few others.

Types of SEPA payment

There are three main SEPA payment instruments, each serving a different purpose:

SEPA Credit Transfer (SCT)

The standard SEPA payment. You initiate a transfer from your account and the funds arrive in the recipient's account within one business day. This is the most widely used SEPA instrument — suitable for supplier payments, payroll, and any standard B2B transaction.

SEPA Instant Credit Transfer (SCT Inst)

The same as SCT, but the money arrives within 10 seconds, 24 hours a day, 365 days a year. SEPA Instant is available at banks and payment providers that have opted into the scheme. The maximum transaction amount is €100,000 per transfer. Not all institutions support SEPA Instant — your recipient's bank needs to be enrolled as well.

SEPA Direct Debit (SDD)

Allows you to pull funds from a customer's euro account on a recurring basis — similar to UK Direct Debit. The customer provides a mandate (authorisation), and you can collect payments on the agreed schedule. There are two variants: Core (for consumers) and B2B (for business-to-business collections, with fewer consumer protections and shorter dispute windows).

Type	Speed	Direction	Max amount
SCT (Standard)	Next business day	Push (you send)	No limit
SCT Inst (Instant)	Within 10 seconds	Push (you send)	€100,000
SDD Core	T+2 (debit)	Pull (you collect)	No limit
SDD B2B	T+1 (debit)	Pull (you collect)	No limit

Which countries are in SEPA?

SEPA currently covers 36 countries. All 27 EU member states are included, plus:

SEPA only covers payments in euros. Sending GBP, CHF, or SEK — even within SEPA countries — requires SWIFT or local payment rails, not SEPA.

SEPA vs SWIFT: what's the difference?

This is one of the most common questions from UK businesses working internationally. Here is the short version:

	SEPA	SWIFT
Coverage	36 European countries	200+ countries globally
Currency	Euros only	Any currency
Speed	Same day or instant	1–5 business days
Cost	Low / flat fee	Higher, variable
What you need	IBAN + BIC	IBAN or account number + BIC/SWIFT code
Best for	Regular EUR payments to Europe	Non-EUR or non-European transfers

The practical rule: if you are paying a European counterparty in euros, use SEPA. If you are paying anyone outside the SEPA zone, or paying in a non-euro currency, use SWIFT.

Can UK businesses still use SEPA after Brexit?

Yes. The UK remained in SEPA after Brexit. The UK is not an EU member, but SEPA membership is separate from EU membership — it is administered by the European Payments Council, which includes non-EU countries such as Norway, Switzerland, and Iceland.

UK payment providers that are SEPA members can still send and receive SEPA payments. However, not all UK banks and payment providers have maintained SEPA access. Some high street banks have removed or restricted SEPA payments post-Brexit, routing euro transfers through SWIFT instead — which is slower and more expensive.

How to send a SEPA payment

To send a SEPA Credit Transfer, you need:

• Recipient's IBAN — their International Bank Account Number
• Recipient's BIC/SWIFT code — identifies their bank
• Amount in euros
• Payment reference — your invoice number or reference (up to 140 characters)

In most banking apps and portals, you select "SEPA transfer" or "EUR international transfer", enter the IBAN and BIC, and submit. If your provider has SEPA Instant enabled and the recipient's bank supports it, you can select instant delivery.

There is no SWIFT code required for the intermediate bank — SEPA routes directly between accounts without the correspondent banking network that SWIFT uses.

How to receive SEPA payments in the UK

To receive a SEPA payment into your UK account, you need a UK-based payment account with a SEPA-connected IBAN. You give your sender your IBAN and BIC, and the funds arrive in euros — typically within one business day.

The key requirement: your UK payment provider must be connected to the SEPA scheme. Traditional UK high street banks vary — some have maintained SEPA access, some have not. Specialist business payment accounts and fintech providers focused on cross-border payments are more likely to have active SEPA connectivity.

When you receive a SEPA payment, the money arrives in euros. You can then hold the EUR balance, convert it to GBP, or use it to pay a EUR-denominated supplier. With a multi-currency account, your EUR sits in a dedicated EUR wallet with its own IBAN — you control when and whether to convert.

SEPA payment timing and cut-off times

SEPA Credit Transfer payments submitted before your provider's daily cut-off time are typically processed that same business day and credited to the recipient on the next business day. The specific cut-off time depends on your payment provider.

SEPA Instant operates 24/7 with no cut-off times — funds arrive within 10 seconds regardless of time of day, including weekends and public holidays. The limitation is the €100,000 per-transaction cap.

SEPA payments are not processed on TARGET2 closing days (European system holidays). The European Payments Council publishes the closing calendar — typically a handful of days per year beyond standard EU public holidays.

Related guides

SEPA & SWIFT payments at ARIDANG →
Full FAQ — UK accounts, SEPA, SWIFT & multi-currency →
UK accounts for non-resident companies →