Abstract The article looks at recent developments in attempts to reduce the difference between costs of cross-border payments within the EU and those of domestic payments. It recalls earlier steps in relation to the creation of SEPA, the Single Euro Payments Area, in particular in relation to retail payments. The analysis focuses on the recently adopted Payment Services Directive (PSD), concerning the classic operations of placing cash on, and withdrawing cash from, a payment account but also the three categories of payment instruments which it had been agreed SEPA should concentrate on, viz. credit transfers, payment cards, and direct debits. In this context, the article examines the group of providers included in the Directive’s scope. It further deals with Transparency and information, the implementation of the Directive and the grace period allowed. Finally, it examines the Competition law aspects involved.