[flessner]

As much as I like SEPA it is primarily for bank transfers.

The way that payments work through SEPA is that the merchant pulls the money from your account. Legally they require a "mandate" - this can be as little as a handwritten signature on a document.

Security is essentially provided by easy reversal and strong penalties for abuse.

[kingo55]

As opposed to blockchain where reversal depends on the grace of the merchant.

I've often wondered whether payments providers entering the blockchain space (like Visa/Mastercard) would act as trusted intermediaries for dispute resolution. Kind of a 2-of-3 multisig to disperse the funds in escrow.

[nl]

One of the most common examples of smart contacts is a reversible transaction with dispute resolution by a third-party.

Infact you could implement exactly what you suggest in a similar way.