The network will allow citizens and companies to make payments via their bank anywhere in the euro area within a matter of seconds, and is scheduled to come into operation in November 2018. Currently, it can take up to one business day for money transfers to move across the Eurozone.
Real-time transfer is already available for large volume payments, but the new service will be on offer to smaller companies and individuals. Retail banks will be able to use TIPS at a maximum price of 0.20 cents per payment for at least the first two years.
Instant payments systems are already available in Italy, the Netherlands, and Spain, but the proposed ECB system will offer the same service to all 19 countries in the Eurozone bloc. The new system will also pave the way for consumers to make person-to-person mobile payments, said the ECB.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now