From the March Special Report issue of Treasury & Risk magazine

SEPA Facilitates Making Payments for Subs

Companies in Western Europe will now have an easier time using payments-on-behalf-of structures.

As more companies take steps to centralize their payment processes,those using payments-on-behalf-of (POBO) structures will get a helping hand from the Single Euro Payments Area (SEPA).

Companies employing a POBO structure make payments for subsidiaries out of a central account, which allows them to cut back on bank accounts and related costs.

Continuum of Centralization

Paying on behalf of subsidiaries represents the most sophisticated level of payment centralization, and Arnold said that at this point “very few” companies have such structures in place.

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