Which standards format is used in Europe for the Single Euro Payment Area (SEPA)?

The Single Euro Payment Area (SEPA) utilizes the ISO 20022 standard format for electronic payments and financial services. ISO 20022 is an international standard that provides a common platform for the development of messages in a standardized electronic format used across different financial systems. This is especially important for SEPA as it aims to ensure a seamless and efficient payment landscape within Europe.

ISO 20022 supports a richer set of data compared to other standards, which is crucial for processing transactions that require detailed information, such as direct debits and credit transfers across SEPA member countries. By using ISO 20022, payment service providers can enhance interoperability and streamline payment processes, making it easier for businesses and consumers to conduct transactions across borders within the Eurozone.

Understanding this context highlights why ISO 20022 is the correct answer for the standards format used in SEPA.