SEPA Transfers for Indian Exporters, Freelancers, and Businesses

SEPA (Single Euro Payments Area) is a standardized format that lets companies, individuals, and government entities pay and receive Euro payments across 40  European countries.

If you’re an Indian freelancer, an exporter or a SaaS company with European clients, knowing about SEPA transfers will help you understand how the system works. Providing it as a payment option could help you land more clients in these countries. 

We suggest reading this guide till the end to understand SEPA transfer, its benefits, timeline, and how you can receive payment in India using this system.

What is SEPA

SEPA (Single Euro Payments Area) is a payment system that makes euro transfers between participating European countries as simple, fast, and affordable as domestic transfers. Think of it as Europe's version of India's NEFT/RTGS systems, but operating across national borders. SEPA was launched in 2008 by the European Payments Council as part of broader financial integration efforts within the EU. 

SEPA currently includes 40 countries, according to the recent European Payment Council (EPC) Geographical Scope Report:

Before SEPA, sending money between European countries involved high fees, slow processing, and different formats. SEPA harmonized these systems, enabling European businesses and individuals to use only one bank account and a standardized payment format

What is a SEPA Transfer?

A SEPA transfer is a euro bank transfer between accounts in any SEPA-participating countries. This standardization means every transaction follows identical technical specifications, messaging formats, and processing rules regardless of the countries involved. 

For example, a SEPA transfer from France to Germany or Spain to Finland follows the same transaction structure and consistent information requirements, such as IBAN and BIC codes.

SEPA Transfer vs. Domestic Transfers

A SEPA transfer may appear similar to a domestic transfer, however, there are a few differences:

Types of SEPA Transfers

1. SEPA Credit Transfer 

This method is useful for making one-time payments and can be done using the IBAN Number. In certain scenarios, you might have to use a BIC too.

2. SEPA Instant Credit Transfer 

Introduced in 2017, SEPA Instant Credit Transfer offers near-immediate settlement. Once a payment is initiated using this method, the funds arrive in the recipient's account within 10 seconds, even on a weekend or a public holiday. The current transaction limit for this method is €100,000. 

3. SEPA Direct Debit 

In SEPA direct debit, the recipient initiates the collection rather than the payer pushing funds. But before the collection happens, the payer must provide a formal mandate, a signed authorization document containing details including the payer's IBAN, creditor identifier, and whether it's a one-time or recurring collection. Each mandate has a Unique Mandate Reference (UMR)

4. SEPA Direct Debit Business-to-Business 

The business-to-business variant caters specifically to business transactions. Both the payer and the recipient must be non-consumer entities. This payment method is ideal for regular supplier payments, service contracts between businesses, and other commercial arrangements

How Does a SEPA Transfer Work?

Here is a step-by-step process of how a SEPA transfer takes place:

To ensure a successful SEPA transfer, the following details are mandatory:

SEPA Transfer Time: How Long Does a SEPA Transfer Take?

Here’s a table explaining the SEPA transfer timeline:

Different factors like bank cut-off times, weekdays and holidays, and the recipient’s bank’s processing are a few factors that might affect the transfer time, leading to delays.

SEPA Transfer Fees: What Does It Cost?

Within the eurozone, SEPA transfers are typically free or cost just €0–€1, thanks to EU regulations that require cross-border euro transfers to be priced the same as domestic ones. So, sending money from a German bank to a French bank usually costs the same as sending it within Germany, fast, simple, and almost free.

What Indian Users Should Know

If you're in India, though, the story changes. Since India isn't part of the SEPA network, receiving a SEPA transfer here is treated like any international wire transfer. Indian banks apply SWIFT fees, usually between ₹1,200 and ₹4,200, and also add a forex markup when converting euros to rupees. On top of that, you might face intermediary bank charges, inward remittance fees, and FIRA issuance costs. Together, these deductions can significantly eat into the amount you actually receive.

How Do You Receive SEPA Payments in India?

For Indian exporters, freelancers, and entrepreneurs working with European clients, receiving SEPA payments can be a challenge. Indian banks do not provide SEPA accounts directly. 

Skydo solves this problem. It provides you with a virtual European IBAN account. This means you can receive SEPA payments without the hassles of international transfers. Your Europe-based clients pay you like paying any other local business, while you enjoy faster settlement and lower fees.

How Skydo Works: Step-by-Step

Why Skydo Is the Best Way to Receive SEPA Payments

If you're working with European clients, Skydo offers a seamless alternative to traditional international transfers, without the hidden costs and operational headaches.

Here’s why Skydo stands out:

With Skydo, you not only save on fees but also streamline the entire process of receiving international payments, letting you focus more on growing your business and less on chasing your money.

Create an account in Skydo for free and start receiving SEPA payments.