TARGET Instant Payment Settlement or TIPS is a TARGET Service of the

Eurosystem The Eurosystem is the monetary authority of the eurozone, the collective of European Union member states that have adopted the euro as their sole official currency. The European Central Bank (ECB) has, under Article 16 of its Statute,

that allows the settlement of

instant payment Instant payment (sometimes referred to as real-time payment or faster payment) is a method of electronic funds transfer, allowing for almost immediate transfer of money between bank accounts. This was in contrast to the previous transfer times o ...

s in central bank money. The acronym TARGET stands for Trans-European Automated Real-time Gross-Settlement Express Transfer; other TARGET Services include

T2 (RTGS) T2 is a financial market infrastructure that provides real-time gross settlement (RTGS) of payments, mostly in euros. It is operated by the European Central Bank and is the critical payments infrastructure of the euro area. With turnover in the tri ...

and TARGET2-Securities. TIPS was introduced in November 2018 to respond to developments in the electronic payments market. As of late 2024, it settled payments in

euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

s and

Swedish krona The krona (; plural: ''kronor''; sign: kr; code: SEK) is the currency of Sweden. Both the ISO code "SEK" and currency sign "kr" are in common use for the krona; the former precedes or follows the value, the latter usually follows it but, espec ...

s, with extensions planned to

Danish krone The krone (; plural: ''kroner''; sign: kr.; code: DKK) is the official currency of Denmark, Greenland, and the Faroe Islands, introduced on 1 January 1875. Both the ISO code "DKK" and currency sign "kr." are in common use; the former precedes ...

s and

Norwegian krone The krone (, currency sign, abbreviation: kr (also NKr for distinction); ISO 4217, code: NOK), plural ''kroner'', is the currency of the Kingdom of Norway (including List of possessions of Norway, overseas territories and dependencies). It was t ...

Overview

TIPS is an extension of T2 that complies with the SEPA Instant Credit Transfer (SCT Inst) scheme, a functionality of the

Single Euro Payments Area The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for simplification of bank transfers denominated in euros. , there were 41 members in SEPA, consisting of the 27 member states of the European Union ...

(SEPA) initiative. Service providers that participate in T2 need to open a TIPS account to also participate in TIPS. SCI Inst compliance implies that transactions are finally settled in less than ten seconds. In 2024, TIPS settled 99 of transactions in less than five seconds. Following an agreement between

Sveriges Riksbank Sveriges Riksbank, or simply the Riksbank, is the central bank of Sweden. Founded in 1668, it is the world's oldest surviving central bank, and the third oldest bank in continuous operation. Prior to World War I, it was also the only state- ...

and the Eurosystem on , the Swedish RTGS system RIX was connected to TIPS on , and its integration into TIPS was completed on . Another agreement of the Eurosystem with

Danmarks Nationalbank Danmarks Nationalbank (in Danish often simply ''Nationalbanken'') is the central bank of the Danish Realm, Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks (ESCB). Since its establishment in 1818, the objecti ...

on provides for Denmark to join TIPS (as well as T2) in March 2025.

References

External links

* ECB
TIPS documents & links
Payment clearing systems Eurosystem {{bank-stub

Overview

See also

References

External links