Today the European Union is confronted with a fragmented payments landscape which has developed along national lines. The use of payment instruments varies significantly from country to country since each Member State has tailored standards and practices to the needs of domestic users and the requirements of national legislation. Furthermore, the vast majority of payments are still domestic which has resulted in established and distinctive national payment systems that are not compatible at EU level.

The European payments Infrastructure is also fragmented with differences in technology, processes, standards, services and communication used by the clearing and settlement schemes.

With the introduction of the Euro, this fragmentation became even more apparent. The EU institutions, together with industry, have pro actively sought to remedy this situation. The European Commission has taken regulatory action while industry has responded with self-regulatory initiatives.