Why should your financial institution consider SEPA integration via CENTROlink?

2023 10 12 · 3 min read

If you are a fintech or financial institution in Europe, you have likely heard of SEPA or CENTROlink. The Bank of Lithuania offers a streamlined process for fintech companies operating in Europe, providing regulatory support and access to payment systems, such as CENTROlink  

According to the Investuok Lithuania Report, in 2022, the usage of CENTROlink for payments grew by 1.5 times, reaching a total of 213 million transactions. This growth highlights the strong involvement of financial institutions in adopting SEPA through the CENTROlink payment system.  

Therefore, in this blog, we explain what CENTROlink and SEPA are and why they are essential for financial institutions. Plus, we will walk you through the steps to connect to CENTROlink and share its benefits.   

So, have a cup of coffee and keep reading to discover how CENTROlink can benefit your financial institution. 

What is CENTROlink? 

CENTROlink is a reliable retail payment system designed for payment service providers (PSPs) in the European Economic Area (EEA). CENTROlink is operated by the Bank of Lithuania, and it supports new payment innovations, such as instant payments and mobile payments. 

Plus, the CENTROlink payment system provides technical access to SEPA and TARGET2 for all EEA-licensed PSPs. This way, it creates an ability for businesses seeking hassle-free payment solutions in the EEA. 

What are SEPA payments? 

SEPA, short for Single Euro Payments Area, makes euro payments simpler across Europe. It is not just for the 27 EU countries but also includes Iceland, Liechtenstein, Norway, Switzerland, and the UK. SEPA has made European payments more efficient and competitive by ensuring payments – within one country or across borders – follow the same rules and standards in all participating countries. 

Now, the CENTROlink system plays a crucial role in making SEPA work smoothly. It lets PSPs handle SEPA credit transfers and direct debits in a speedy and secure way. Plus, it is on board with SEPA instant payments, which means money can move between accounts in real time.  

How can you access CENTROlink? 

Financial institutions interested in connecting to the CENTROlink payment system can do the integration by themselves or get professional consulting and guidance from an IT partner. Below, we outline the key steps for connecting to this payment system, as provided by the Bank of Lithuania. 
 

Considering CENTROlink integration possibilities for your financial institution? Contact our team, who is here to help with IT ecosystem analysis, prepare integration documents, provide implementation guidance, conduct integration testing, and support with needed communication processes. 

What benefits does the CENTROlink payment system offer? 

Without a doubt, connecting to the CENTROlink system can bring a lot of value to your financial institution. Let us explore the various benefits and advantages below. 

In addition to the benefits listed above, the CENTROlink payment system also offers several other advantages to PSPs and their customers.  

Ready to connect to SEPA via the CENTROlink payment system? Get in touch with us for expert guidance and a tailored action plan for worry-free integration.