ECB to develop service for settlement of instant payments
TIPS is scheduled to start operating in November 2018
The Governing Council of the European Central Bank (ECB) says it will develop a new service for the settlement of instant payments.
The new service, Target instant payment settlement (TIPS), will enable citizens and firms to transfer money between each other in real-time and will be available around the clock, 365 days a year.
The ECB has already developed Target2, the Eurosystem’s real-time gross settlement system, used to process large-value payments in euro.
TIPS, as part of Target2, will help process instant money transfers, offered via banks, so that citizens and firms can make instant retail payments across Europe.
According to the ECB, the service will be developed in “close co-operation” with the banking industry in Europe and will be offered to banks at the price of a maximum of 0.20 eurocent (€0.0020) per payment for at least the first two years of operation.
TIPS is scheduled to start operating in November 2018.
