Last week, PwC released an update to the “SEPA Readiness Thermometer” that it originally developed in January 2013. The first report suggested that 55 percent of companies were at risk of missing the February 1, 2014, deadline for clearing euro-denominated credit transfers and direct debits through Single Euro Payments Area (SEPA)-compliant systems. This time around, PwC surveyed 150 organizations about the state of their readiness for SEPA and found that although some companies are making progress, many are still lagging.

The survey found that 26 percent of respondents do not have in place a project plan for SEPA readiness; that number has not decreased since January. “This number is significant,” states the PwC report, “given the incomplete understanding of what SEPA readiness entails. We observe a widespread inconsistency in scope definition—in particular, for companies that have not planned their readiness activities.”

Among all respondents, only 11 percent have fully operational SEPA-compliant systems at this point, while another 20 percent are currently testing their systems. Nearly two in five are still in the implementation phase with their SEPA compliance projects. And almost a third of respondents indicated that their company is way behind—either currently designing SEPA-compliant systems or just now assessing their needs. (See Figure 1.)