It announced its publication of a consultation paper yesterday as a step towards creating a Single Payment Area in the EU where, according to its latest figures, 143 million non-cash transactions take place every day, an average of 138 transactions per year per inhabitant.
The Commission acknowledges that rules protecting payment service users, providers and systems need to be clear and simple across the Internal Market.
Its document reflects discussions already held with Member States, central banks, the payment industry and consumer associations. It includes suggestions for future EU legislation which would constitute a "new legal framework" for payments in the Internal Market.
Responses are invited by 31 January 2004.
Internal Market Commissioner Frits Bolkestein said:
"A Single Payments Area will mean lower costs for payments, an end to unnecessary delays and much greater certainty over security and legal responsibility. It will also help consumers and businesses to get the full benefits of the single currency. This is not only a matter of convenience but also crucial for the competitiveness of the EU economy.
"The EU Regulation on Cross-Border Payments in euro has made it easier and cheaper to make many types of euro payments within the Internal Market. But significant difficulties remain. The Commission is determined to tackle them."
There have been several recent regulatory and commercial steps bringing Europe closer to becoming a single payments area. These include the implementation of the EU Regulation on Cross-Border Payments in euro, which has brought the cost of cross-border card transactions, electronic cash withdrawals and bank transfers in euro into line with the cost of national transactions.
The Regulation has triggered the payment industry to speed up its work to modernise the cross-border payment infrastructure. A major step in this direction was the establishment in June 2002 of a European Payment Council by banks.
But EU payment markets are still fragmented. This can discourage cross-border transactions, hinder trade between EU countries and prevent individuals who live in one Member State from ordering goods and services from another or from using the Internet to buy products at the best prices.
What's more, a recent Commission survey showed that consumer confidence in electronic payments needs to be enhanced, especially in certain Member States.
The Commission's consultation document invites comments on whether existing and new EU laws are necessary. It analyses what form such legislation might take, while emphasising that legislation should only be used where it genuinely adds value.