Target Instant Payments Scheme

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Payment systems - European Central Bank.


TARGET Instant Payment Settlement is a market infrastructure service launched by the Eurosystem in November 2018.

It enables payment service providers to offer fund transfers to their customers in real time and around the clock, every day of the year.

This means that retail and corporate customers can transfer money between each other within seconds, irrespective of the opening hours of their local bank.

TIPS was developed as an extension of TARGET2 and settles payments in central bank money.

TIPS currently only settles payment transfers in euro.

(However, other currencies could be supported in the future as well.)

TIPS fewer barriers to entry
"The European Central Bank’s Target Instant Payments (TIPS) scheme, which went live last year, potentially competes with RT1 for members.
RT1 currently outruns TIPS in terms of numbers of members.
TIPS, however, has advantages including fewer barriers to entry for smaller banks or fintechs, who – under the European Union’s payment directive PSD2 – can partner with a sponsor bank to gain access to TIPS.
As the fintech market gathers steam, this factor might prove decisive."

The Treasurer, Liz Loxton, 17 May 2019, web exclusive.

See also