##bits after 31 october 2012. although directive 2007 / 64 / ec of the european parliament and of the council of 13 november 2007 on payment services in the internal market amending directives 97 / 7 / ec, 2002 / 65 / ec, 2005 / 60 / ec and 2006 / 48 / ec and repealing directive 97 / 5 / ec ( oj l 319, 5. 12. 2007, pp. 1 - 36 ). regulation ( ec ) no 2560 / 2001 of the european parliament and of the council of 19 december 2001 on crossborder payments in euro ( oj l 344, 28. 12. 2001, pp. 13 - 16 ). joint statement by the european commission and the european central bank clarifying certain principles underlying a future sepa direct debit ( sdd ) business model, 24 march 2009. this guidance falls short of the expectations of some national banking communities, we now have clarity in the market. i very much welcome, therefore, the subsequent decision of the european payments council ( epc ) to launch the sdd scheme in november 2009. as regards the migration end - date for both sepa credit transfers and sepa direct debits, let me emphasize that the definition of an ambitious but realistic migration end - date is a key factor to provide certainty, to speed up the migration process, to reduce the cost of maintaining dual systems and to limit the “ wait - and - see ” attitude. moreover, the possibility of setting earlier national end - dates will ensure that migration does not slow down in certain countries. i would also like to say a few words on e - payments and m - payments, the “ newcomers ” in the sepa world. an e - payment, is an internet banking payment, but has the additional feature that the web - merchant receives a payment confirmation in real time. an m - payment is initiated on a mobile phone and could be used for both proximity and remote transactions. sepa provides a unique opportunity for a break - through regarding these e and m - payments, building on the basic sct and sdd schemes, and on sepa for cards. linking up with the cards dossier, e - payments could be the answer to the security concerns many professionals and consumers have in the field of “ card - not - present ” transactions. in the domain of e and m - payments, banks will, of course, face fierce competition from other market players. therefore, i see the risk that banks may lose

ground in this field if not adapting fast enough to the changing technological environment and to the changing payment habits of the younger generation. therefore, we urgently need sufficient coordination and commitment at the european level for establishing competitive solutions for e and m - payments that at the same time ensure an appropriate security level. sepa for cards let me now turn to sepa for cards, the main focus of my speech today. when being on business travel, i usually conduct my own little “ taxi test ”, trying to pay with a credit card for the taxi fare. the results – though the sample may statistically not be large enough – are disappointing. even in paris, london and frankfurt, taxis still mainly rely on cash payments. only helsinki is an exception. this illustrates only one of the many obstacles and hurdles we still have to overcome in order to provide the citizens of europe with a cashless means of payment that can be used throughout the region in a harmonised manner. we need to overcome the current stagnation in the work underlying sepa for cards. to bring the cards dossier forward, this requires to urgently tackle three important issues, namely the business rules, the technical standards, and finally one or more new european card schemes. i will review each of these elements, focusing in particular on the work that needs to be carried out. 1 ) let me start with business rules. the sepa cards framework ( scf ), the ecb ’ s “ sepa for cards ” report of november 2006 and the additional explanations 4 provided by the epc at the request of the commission ’ s dg competition set out the basic rules for sepa for cards. however, as i have already said on other occasions, the scf is a general document that requires further elaboration. epc, “ questions and answers clarifying key aspects of the sepa cards framework ”, june 2008. the epc has started in depth work on the scf. we at the ecb see this as an opportunity to provide clarity and more detailed rules. the epc should reflect on the creation of a card transaction processing framework which was also highlighted in the 6th sepa progress report. however, not only the epc needs to continue its work. individual card schemes apply rules that function as barriers to competition and need to be removed. let me give you some examples from a long list of issues : • the charges or reporting requirements that some schemes impose on issuers and acquirers for transactions carried out