Banking is changing fast. Across Europe, more people and businesses are moving away from traditional accounts and looking for faster, more flexible ways to manage money. That’s where e-money accounts come in. These accounts make it easier to hold, send, and receive money digitally. And in Europe, where regulation is strong and the fintech scene is thriving, e-money accounts are becoming a go-to choice for everything from payroll to embedded payments. And when paired with the right infrastructure partner, they can unlock new opportunities for growth, scale, and innovation.
In this article, we’ll take a closer look at what SEPA-enabled e-money accounts are, how they work, and why they’re proving essential for fintechs and marketplaces aiming to stay ahead of the curve.
How SEPA works - a quick refresher
SEPA, the Single Euro Payments Area, is a harmonised payment system that simplifies euro transfers across 36 participating countries.
It enables euro payments to move just as easily between Paris and Berlin (for example) as they would between two accounts in the same city.
Here’s what SEPA covers:
- SEPA Credit Transfers (SCT): Standard euro transfers between accounts, typically settled within one business day.
- SEPA Direct Debits (SDD): Authorised pulls from a payer’s account—ideal for subscriptions and regular payments.
- SEPA Instant Credit Transfer (SCT Inst): Real-time euro transfers (with no maximum amount set a level-scheme) processed in seconds, 24/7/365.
SEPA vs SWIFT
While SEPA handles euro payments within Europe, SWIFT is used for global, multi-currency digital payment systems. SEPA is cheaper, faster, and more predictable—making it the preferred choice for eurozone businesses.
SEPA Instant, in particular, is transforming user expectations. It enables real-time payments between SEPA participants, offering a superior customer experience and helping platforms reduce reconciliation delays.
Licensing and compliance: What makes an EMI legit?
Behind every legitimate e-money account is a regulated Electronic Money Institution (EMI). These are companies licensed to issue e-money and provide payment services under the supervision of national regulators.
Key regulatory elements:
- Regulators: EMIs are authorised by financial authorities like the Central Bank of Ireland, BaFin (Germany), or the Banque de France.
- Safeguarding: EMIs must safeguard client funds in segregated accounts—meaning your business’s money is ring-fenced and protected.
- Capital requirements: EMIs must hold a minimum level of capital to ensure financial resilience.
- Passporting rights: Once authorised in one EU country, EMIs can operate across the entire European Economic Area under passporting rules.
To understand whether your business needs to obtain an e-money licence, it's critical to assess how you plan to handle customer funds and structure payment flows.
Key features to look for in a SEPA e-money accounts provider
Choosing the right SEPA e-money accounts partner is more than just ticking boxes. Here are some essential features to evaluate:
- Multi-IBAN issuance: Allocate unique IBANs to individual users or business accounts for clear tracking and reconciliation.
- SEPA Instant availability: Ensure real-time euro payments are fully supported—especially for time-sensitive use cases.
- API-first access: Look for providers with robust APIs that integrate seamlessly with your platform. This is especially important if you're building on embedded finance architecture.
- Real-time reconciliation: Instant visibility into transactions helps your finance and operations teams stay on top of balances and movements.
- Integrated KYC/KYB: Speed up onboarding with built-in identity and business verification workflows.
These aren’t just technical features—they’re enablers of growth and operational efficiency.
Real world use cases
To understand the practical impact of SEPA e-money accounts, consider the following scenarios:
- A pan-European gig platform needs to pay 20,000 freelancers in multiple countries. SEPA Instant transfers ensure everyone gets paid in seconds.
- A cross-border B2B platform uses e-money accounts to hold client funds, automate FX conversion, and settle invoices—without opening bank accounts in every country.
- A trade finance program requires the ability to issue virtual IBANs to each merchant, simplifying reconciliation and enabling real-time digital payments.
Each use case shows how SEPA e-money accounts reduce friction and unlock new revenue models.
How Edenred Payment Solutions empowers your payment infrastructure
Edenred Payment Solutions provides a full-stack platform for issuing and managing SEPA e-money accounts. As a fully authorised Electronic Money Institution, it combines regulatory expertise with cutting-edge technology to help businesses build better payment experiences.
Here’s what you can expect:
- Custom payment flows: Tailor onboarding, funding, and settlement journeys to your exact business model.
- API-first platform: Seamlessly integrate SEPA rails into your tech stack with robust, well-documented APIs.
- Safeguarding and compliance: Edenred Payment Solutions reduces the regulatory complexity burden for you.
- Fast time to market: Launch new payment products without building infrastructure from scratch.
Whether you're building a new fintech app, expanding your marketplace, or simply need a faster way to move euros across borders, Edenred Payment Solutions gives you the foundation to move quickly and scale securely.
Final thoughts: Powering the future of euro payments
The ability to move money across Europe quickly, compliantly, and cost-effectively isn’t just a nice-to-have—it’s foundational to modern business.
SEPA e-money accounts are the infrastructure behind this shift. They combine the speed and reach of SEPA with the flexibility and programmability of modern embedded payments. And with a trusted partner like Edenred Payment Solutions, you can bring this power to your users—with less regulatory and operational complexity.
Explore how we can support your euro payment strategy
Learn more about our EU accounts offering - fully secure and integrated with SEPA functionalities.
