The Complete Guide to SEPA Instant & SEPA Credit Transfers
Understand SEPA Instant vs SEPA Credit transfers, their benefits, and how Due enables fast, low‑cost EUR payments across 36 European countries.
Introduction
Europe’s fast, seamless, and efficient financial transfers are built on the backbone of the Single Euro Payments Area (SEPA). Moving funds from France to Germany or receiving money from Spain in the Netherlands are made possible through SEPA Credit and SEPA Instant.
But what’s the difference between the two? Which one is best for your business, freelancer payments, or cross-border e-commerce? In this guide, we’ll break it down and explain how Due uses both to transfer funds across Europe in seconds, not days.
What Is SEPA?
SEPA (Single Euro Payments Area) is a framework for simplified bank transfers across 36 European countries, including all EU member states, plus Iceland, Norway, Liechtenstein, Switzerland, and the UK (partial coverage).
It supports:
- SEPA Credit Transfer (SCT)
- SEPA Instant Credit Transfer (SCT Inst)
- SEPA Direct Debit (SDD)
We’ll focus on SEPA Credit and SEPA Instant, the two most common rails for business and personal payments.
SEPA Credit vs. SEPA Instant – Key Differences
SEPA Credit:
Used for scheduled transfers, batch payments (like payroll), and traditional invoice settlement.
SEPA Instant:
Ideal for on-demand payments: gig economy payouts, e-commerce refunds, or urgent B2B transactions.
How do EU countries use this system?
Spain is leading the instant payment adoption. Over 53% of credit transfers there are processed instantly – far above the EU average. This translates to hundreds of billions of euros in monthly real-time flows, thanks in part to systems like @Bizum.
The European Central Bank’s @TIPS platform is another powerhouse, enabling real-time settlement of SEPA Instant payments across Europe 24/7. While individual high-value transfers aren’t typically disclosed, aggregate daily volumes hit multi-billion-euro levels.
Limits Raised, Possibilities Expanded
SCT is widely used for large corporate and public-sector payments, such as cross‑border VAT, bond settlements, or public procurement, often involving hundreds of millions per transfer. In a major update, the cap on SEPA Instant transfers has been raised from €100,000 to nearly €1 billion per transaction. This clears the way for high‑value B2B and corporate payments to move instantly.
Big Money Behind the Scenes
SEPA Credit Transfers remain the go‑to for large corporate and government payments, often involving hundreds of millions per transfer. From tax settlements to public tenders, SCT is the silent engine behind Europe’s financial system.
How Due Uses SEPA for Cross-Border Payments
Due connects to the SEPA network in real time, using banking partnerships and direct integrations to offer:
- Instant pay‑ins and payouts in EUR
- Smart currency routing when EUR is part of a broader corridor (e.g., EUR to GBP or EUR to BRL)
- Unified onboarding and compliance for SEPA‑based transfers
Example:
Your German client pays €5,000 using SEPA Instant. Due settles it to your French account in less than a couple of seconds.
Benefits of SEPA Transfers via Due
Real-World Use Cases
- E‑commerce: Quick refunds or supplier payments
- Freelancers: Seamless payouts across European borders
- Marketplaces: Near‑instant pay‑ins from customers
- Finance teams: Scheduled bulk payouts with SEPA Credit
Frequently Asked Questions
- What’s the difference between SEPA Credit and SEPA Instant?
- SEPA Credit settles in one business day. SEPA Instant is real time and 24/7.
- Is SEPA Instant available in all EU countries?
Most banks support it, but not all. Due checks availability automatically and falls back to SEPA Credit if needed.
- Is SEPA cheaper than SWIFT?
Yes. SEPA is designed for low‑cost EUR transfers, while SWIFT is for international, multi‑currency payments.
- What’s the max amount I can send via SEPA Instant?
€100,000 is the standard limit, although it can vary slightly by bank. SEPA Credit supports much higher amounts.
Start Sending SEPA Payments with Due Today
Whether you're sending €20 or €200,000, Due makes it instant, transparent, and Compliant. Create your free account and start sending SEPA payments in minutes. Sign up here.
