How SEPA Will Be the Backbone of Modern European Payments Sovereignty

Why It Matters

SEPA’s entrenched infrastructure underpins Europe’s push for payment sovereignty, and its evolution will dictate the region’s competitiveness in a digitised, interoperable financial ecosystem.

Key Takeaways

• SEPA remains core infrastructure for European payment sovereignty.
• Instant payments now dominate transfers in Slovenia, lagging in France.
• Lack of domestic card schemes drives push for digital euro and wallets.
• Banks and fintechs must collaborate, not just compete, for SEPA growth.
• AI-driven fraud tools, like STET‑Feedzai partnership, enhance trust in payments.

Summary

The interview at Diebold Nixdorf Intersect 2026 focused on SEPA’s evolution as the foundational layer for European payment sovereignty, with Regis Folbaum of STET emphasizing its long‑standing role and future relevance.

Folbaum highlighted that SEPA already aligns European payments, citing the rapid adoption of instant‑payment schemes—90% of transfers in Slovenia now use instant payment versus roughly 25% in France. He also noted the scarcity of domestic card schemes, which fuels demand for a digital euro and interoperable wallets.

Key examples included the Slovenian instant‑payment dominance, the French lag, and STET’s partnership with fintech Feedzai to deploy AI‑driven fraud management. Folbaum described the ongoing tug‑of‑war between banks and fintechs, advocating for cooperation over acquisition.

The discussion underscores that SEPA’s robust rails are essential for both European sovereignty and global interoperability. Banks, fintechs, and regulators must collaborate to extend SEPA’s reach, integrate AI security, and support emerging digital‑currency initiatives, shaping the next wave of European payments.

Original Description

Whilst attending Diebold Nixdorf Intersect event in Cannes, Regis Folbaum, CEO, STET spoke to FinextraTV about the progress SEPA has made with European alignment. Discussing what this alignment means for the payments industry, Folbaum mentioned instant payments regulation and growing adoption of domestic card schemes, professing that SEPA will be the backbone of this next wave of European payments sovereignty. Folbaum goes on to say that the current relationship between fintech firms and banks continues to be complicated, with fintechs holding a certain arrogance, according to Folbaum, and banks defaulting to mergers and acquisitions.

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