ECB announces instant cross-border payments across the eurozone
(30 November 2018 – Europe) The European Central Bank has launched Target Instant Payments Settlement (TIPS), a pan-eurozone instant payments systems in response to the rise in digital wallets.
The new system will be available across 19 states in the eurozone to both consumers and businesses and will offer near real-time payments via smartphones, PCs and in-store payment points.
While instant payment services for domestic use have been launched by various banks, there are currently no such services for cross-border transactions.
The ECB is looking to fill this void with the TIPS system which is directly linked to central bank funds therefore avoiding some of the settlement processes that can inhibit instant payments.
The service will initially be limited to the eurozone however the central bank has not ruled out extending it to other countries and currencies in the future.