The date for simpler cross border payments will soon be here as from 1 February 2016, payment services providers will require less information when processing such transactions. Article 5(7) of the Single Euro Payments Regulation states that "after 1 February 2016 for cross-border payment transactions, Payment Services Providers shall not require Payment Service Users to indicate the BIC of the PSP of a payer or of the PSP of a payee".
What this means for you
What this means in practice is that from 1 February 2016 making a cross border payment will be easier as customers will just need to provide their International Bank Account Number. UK customers are currently also required to give their Bank Identifier Code to help the bank identify an account when making SEPA transactions. This will bring the UK in line with the Eurozone countries that use this internationally recognised standard format. It will also increase efficiency and reduce the likelihood of payment errors, as more payments will be able to be made without the need for manual intervention through the use of Straight Through Processing.