What format for account numbers was developed to facilitate payments within the EU?

The International Bank Account Number (IBAN) format was developed to standardize the identification of bank accounts across different countries, particularly within the European Union (EU). The main purpose of the IBAN is to facilitate seamless cross-border payments and reduce errors in transactions by providing a clear and structured framework for bank account numbers.

An IBAN consists of a country code, two check digits, and a series of alphanumeric characters that represent the domestic bank account number. This uniformity allows payment processors and financial institutions to quickly and accurately identify the relevant accounts, thereby streamlining international transactions within the EU and making them more efficient and secure.

In contrast, while SWIFT codes are used for international transfer of funds and identifying banks, they don't format individual account numbers. Sort codes are specific to the UK and identify bank branches, while routing numbers serve a similar purpose in the US banking system but are not designed for international transactions or the EU context. Therefore, the IBAN is the correct format specific to facilitating payments within the EU.