BRUSSELS, March 27: European Union citizens will be able to pay bills anywhere in the 27-country bloc using cards and credit transfers from a single bank account, under rules adopted by finance ministers on Tuesday.

The aim of the single euro payments area or SEPA is to increase competition in the financial sector, cutting costs and increasing choice for consumers.

“This is practical progress on the way to financial integration in Europe,” said German Finance Minister Peer Steinbrueck, whose country holds the rotating EU presidency.

The deal was unanimously agreed and ends months of deadlock over how easy it should be for new entrants, such as mobile phone operators or supermarkets to compete with banks in payment services.

Some changes wanted by the European Parliament, which has joint say with EU states, were rejected by ministers, but the bloc's assembly is set to adopt the compromise at first reading on April 23, Steinbrueck said.

Jean-Paul Gauzes, the French centre-right lawmaker responsible for the rules in parliament, said a speedy deal was urgently needed for banks to have time to prepare.

The agreement is acceptable,” Gauzes told Reuters. The European Commission, which proposed the measure, expects SEPA to save the EU economy 50 billion euros ($66.4 billion) to 100 billion a year by making a cross-border transaction just as cheap as a purely domestic one.

The new pan-EU payments system based on common technical standards would end the current national patchwork, making it easy for new entrants to offer payment services competing with banks cross-border.

It should also boost new types of payment services, such as over mobile phones or paying utility bills at a supermarket. The European Central Bank says the move would exploit the benefits of the single currency by encouraging cross-border competition in services to boost growth.

“It will ensure consumers benefit from a high level of protection and a choice of payment services,” EU Internal Market Commissioner Charlie McCreevy said.

Agreement among ministers was aided by the introduction of a clause to review parts of the new rules within three years, with the scope of that check widened following interventions by France and Finland.

SEPA would enable the EU's 490 million citizens to use any credit or debit card outside their home country and authorise direct debits and credit transfers across the bloc, all from one bank account. Euro transactions would be completed within one working day.

“A more efficient and competitive payments market will also mean that individual Europeans pay less for basic banking services, the average yearly cost of which ranges from 34 euros to as much as 252 euros across the EU,” the Commission said.—Reuters