SEPA Transfer: Purchase Cryptocurrency Easily 2021

There are so many ways to acquiring and buying cryptocurrencies, in the previous article we wrote about using a credit card to purchase cryptocurrencies, from exchanges like ours (Koinal) and a couple of others. Buying cryptocurrency is the new deal, as it has proved to be profiting over the years. As easy as we make purchasing bitcoin and other cryptocurrencies on our articles, a lot of newbies still get confused over this subject.

The beauty is in the diverse alternative they could explore when choosing to purchase cryptocurrencies. Ranging from preference down to availability, convenience, ease, simplicity, and other factors, these could determine the step or option they would take or prefer.

Cryptocurrency with SEPA transfer” is an alternative a lot of folks would love to explore.

What is SEPA? The Single Euro Payments Area (SEPA) is a payment integration idea for the European Union for the simplification of bank transfers denominated in euro. There are about 36 active members in SEPA consisting of the 27 member states of the European Union, The four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland), and the United Kingdom. Other countries and Micro-states involved in the scheme include; Andorra, Monaco, San Marino, and Vatican City.

The goal of SEPA is quite simple and direct, it is simply to improve the efficiency of cross-border payments and turn the formerly sectioned national markets for euro payments into a single domestic one. SEPA allows customers to make cashless euro payments to accounts located around the axis. People in the eurozone can receive funds and even salaries using SEPA, SEPA doesn’t, however, cover payments in currencies in other euro. Nordic such as Finland that doesn’t identify with using Euros can not subscribe to SEPA.

SEPA uses to cover predominantly normal bank transfers, till it was slowly incorporated into smart devices and mobile phones.

SEPA provides several payment schemes;

How does a SEPA bank transfer work?

There are three types of SEPA bank transfers, which offer three distinct services. Here’s how the SEPA Credit Transfer, the SEPA Instant Credit Transfer, and the SEPA Direct Debit Transfer work.

SEPA Credit Transfer

Usually used for one-off transfers, the SEPA Credit Transfer uses IBANs of both the sender and the receiving bank accounts to move money from one account to another. As soon as payment is authorized, the recipient should expect their money within one business day after the payment was made.

Picture a scenario of you trying to send €800 from your account in France to your friend’s account in Spain. Since both countries are within the SEPA region, this would count just as a domestic transfer with the SEPA Credit Transfer.

First, the French bank would take €800 from your bank account. Then, by using the IBAN—and if necessary, the BIC—numbers to find the correct bank account, the €800 is transferred into your friend’s bank account by their French bank, all within one business day.

SEPA Instant Credit Transfer

 SEPA Instant Payment as it is also called, the SEPA Instant Credit Transfer was launched in November 2017.  Going by its name the SEPA Instant Credit speaks much about ‘speed’ and the ”quickness” in money movement between two banks. As soon as the sender confirms a SEPA Instant Credit Transfer, the funds are made available in the recipient’s account in a minimum of ten seconds and a maximum time of twenty seconds. This largely owes to the fact of SEPA Instant Credit Transfers using direct routing from the sender’s bank to the recipient’s bank, without involving the actions of any intermediaries during the process. SEPA Instant Credit Transfers are also available 24/7, 365 days a year, compared to other banking procedures that are delayed during the weekend and even public holidays. 

However, to use the SEPA Instant Credit Transfer, both banks must be registered as SEPA Instant members. Before carrying out the transaction, ensure confirmation that the receiver’s bank is confirmed the SEPA account. Check that both bank accounts can accommodate SEPA Instant Credit Transfers.

SEPA Direct Debit Transfer

Different from the SEPA Credit Transfer and the SEPA Instant Credit Transfer, the SEPA Direct Debit Transfer is more preferred use for regular payments. Some examples of regular payments involve payments you do daily, weekly, and even annually but it does in a fairly consistent number of times, these may include your monthly rent, internet or electricity bills, or regular loan repayment installments. 

Similar to the other SEPA transfers, the SEPA Direct Debit Transfer also requires the IBAN— and occasionally the BIC—of both bank accounts. But because the SEPA Direct Debit Transfer works as a “pull-based” method of payment, it differs —in this case, the recipient files in the request to the sender, to allow the money to be ”pulled off” before any transaction can be done the sender must sign a ”mandate”—A contract that allows the recipient of the funds to take funds out from the senders account repeatedly. It is of great use when you prefer the automatic payment of your bills, once they get due rather than remembering to pay them. Saves the stress!

There are two types of SEPA Direct Debit Transfers: 

  • The SEPA Core Direct Debit Transfer is available to individuals and must be offered by all banks participating in the SEPA scheme.
  • The SEPA B2B Direct Debit Transfer only works between businesses, and banks participating in the SEPA scheme may choose to offer it to their customers, but it is not mandatory.

How long does a SEPA transfer take?

The duration of time for a SEPA transfer is dependent on which type of SEPA transfer you choose to use. 

  • The SEPA Credit Transfer takes one business day. 
  • The SEPA Instant Credit Transfer takes less than ten seconds with a maximum of twenty seconds.
  • The SEPA Core Direct Debit Transfer takes a minimum of two business days.
  • The SEPA B2B Direct Debit Transfer takes a minimum of three business days.

Are there any SEPA transfer charges?

SEPA transfers generally cost the same amount as a local domestic bank transfer, which means that they usually come free. Although, a small number of banks may charge you an extra fee for SEPA transfers if they also charge an extra fee to make local bank transfers within the same country. Depending on your bank, the SEPA transfer charge may either be paid in full by the recipient or shared between both parties. When it is shared between both parties, it is known as SHARED costs (SHA)

There may be an extra currency conversion fee if more than one currency is involved. If a customer is sending money from the UK to another EU country, the British pounds would have to be converted into euros, this would incur an additional charge, the reason it is important to double-check the bank before transferring or receiving transfer using SEPA transfer from a different currency. 

SEPA transfer limits

SEPA transfer limits, referring to the amount of money you can transfer at a particular time or per transaction. It ranges from values to values and depends on the transaction being done. 

  • SEPA Credit Transfers have a maximum transfer limit of €999,999,999.99 (i.e. one cent short of one billion euros).
  • SEPA Instant Credit Transfers allow you to send up to €100,000 at a time.
  • SEPA Direct Debit Transfers differs from the rest listed, as it does not have a fixed transfer limit, the limit depends on whatever was decided upon between both parties.

SEPA covers about 36 different countries;

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Iceland
  • Liechtenstein
  • Norway
  • Switzerland


  • Andorra
  • Monaco
  • San Marino
  • Vatican City.

There are some countries part of this initiative but have special areas that are not part of SEPA, it simply means when an individual is in these countries you can earn and make payments using SEPA, however, when entering these territories he/she cannot use the service.

Countries with these zones;

  • Cyprus – Northern Cyprus is excluded
  • Denmark – Faroe Islands and Greenland
  • France – The French Southern and Antarctic lands, French Polynesia, New Caledonia, Wallis, and Futuna are excluded.
  • Netherlands; Aruba, the Caribbean areas of The Netherlands are limited to using SEPA
  • Norway; Svalbard and Jan Mayen are excluded
  • The United Kingdom; British Overseas Territories are excluded save for Gibraltar and the crown dependencies.

Other jurisdiction that makes use of the euro but not in SEPA includes; Kosovo, Montenegro, Antarctic Lands

SEPA can be used in acquiring Bitcoin and other cryptocurrencies, below are the steps required.

Step 1: Open a wallet

A wallet is very important, as this is the place where your crypto assets are stored and kept, there are various kinds of wallets, ranging from Cold wallets to hot wallets. They all serve one purpose which is keeping your Cryptocurrencies safe. It is usually kept personal and should be guarded by the owners.  A wallet can be compromised and its contents are stolen, hence it is advised to keep it safe, when opening a wallet, you are provided a wallet address, private keys; the wallet address is the identification of your wallet, if a transfer is going to be made into your wallet, or a deposit is going to be made, the address is what’d be tendered. Liken this onto the Cashapp tag, if any transaction is required from the owner, the tag is what is presented.

Step 2: Register with an exchange that accepts SEPA transfer

Reasons you don’t have to go far as we at Koinal accept transactions with SEPA. Not all exchanges however accept SEPA transactions. Also owing to regional ability, not all exchanges can be used.

A couple of exchanges asides Koinal that accept SEPA transfers;

CoinCorner: Based in the UK, CoinCorner offers SEPA transfers for European investors with a transaction fee of 1%. Full verification is however required. It covers a wide variety of countries outside Europe.

Kraken: Offers SEPA transfers as a payment method, with a low transaction fee of 0.25%. Others include Coinbase, Virwox, Bitpanda, itBit BTC exchange, Coinfloor, Gatecoin, Bity, Anycoin Direct, LakeBTC, Cubits, and so many others.

At Koinal, SEPA is still one of the most commonly used methods of buying cryptocurrencies

Step 3: Linking your payment method (SEPA)

Upon successful setup of the exchange, you will see an information page with all the details necessary to transfer EUR from your bank account.  This information can be also assessed via the “Deposit EUR” button in your EUR Fiat Wallet.

Please keep in mind that only SEPA transfers from bank accounts with your name on them would be accepted. The information needed:

  • Beneficiary name – the legal name you used to register in our app (this is the person you’re sending the money to)
  • IBAN – this is the bank account number, to which you are sending the funds
  • BIC/SWIFT code – some banks require it to transfer the money
  • Institution name, address, and country – not all banks require this info, but if they do, please use the details provided here

There may be slight differences in the details required by banks, but the information you have here will be sufficient for all of them.

Funds in your EUR Wallet can be used to purchase crypto.

Once the funds are in (you will receive an in-app notification and an email), you can purchase crypto by:

  1. Tap the Buy button
  2. Selecting the crypto you wish to buy
  3. Tap on Fiat Wallet
  4. Select EUR

There are a few things to remember when making a SEPA transfer

  1. EUROs: Only EUR SEPA transfers will be accepted. A EUR transfer initiated from outside of SEPA will not be successful, and incurred or generated fees for international transfer may be added to your funds.
  2. Your Named Account: Transfers can only be accepted from bank accounts opened under your name. 3rd party transfers (e.g. payments from your customers, salary transferred by your employer, etc.) will not be accepted.
  3. Processing Time: Although SEPA transfers are very fast (usually the same or the next day), but it sometimes takes a couple of days before the fund can arrive. It is advised to exercise patience after a transfer
  4. Common Issues: There could be some reasons why a transaction is sometimes delayed, longer than the usual time it would take. A transaction can be delayed further for a couple of reasons, most common reasons for your transfer being on hold are:
    • When the name of your bank account does not fully match your name on our record
    • Your transfer was not made from a bank, but a payment processing company (e.g. Stripe, Wise, etc.)
    • The funds were sent from a joint account
    • Your transfer was not a SEPA transfer,
    • Regionality issues, SEPA payments are not supported in the region in which you reside. Regions determine largely if a user can purchase with the SEPA payment method as payments are only permitted in countries in the Euro Zone
    • SEPA transfers are usually free, your bank may charge you fees, specifically if you’re initiating your SEPA transfer from a non-EUR account. Please check with your bank, before proceeding to avoid incurring any extra fee on a failed transaction.

Upon depositing via SEPA transfer, you can go ahead to purchase cryptocurrencies through your exchange.