ECB launches feasibility study into instant cross-border payments in Sweden

Monday 12 October 2020 13:24 CET | News

European Central Bank (ECB), in collaboration with Sveriges Riksbank, has announced it is launching an investigation into how the platform could support low-cost instant cross-currency transactions.

TIPS currently supports real-time cross-border payments and fund transfers between accounts held in euros, Swedish consumers could be able to make and receive low-cost instant cross-currency transactions to and from any euro area country via the Target Instant Payment Settlement (TIPS) platform once the Swedish kronor joins the platform in May 2022.

In practical terms, this would enable a Swedish consumer to transfer funds in kronor to a retailer in any euro area country, with the payment received in euro in a matter of seconds. A customer in the euro area could transfer euro in payment for goods in Sweden in the same way, according to declarations made by the ECB.

The ECB has launched the investigation as a response to the increasing consumer and business needs that stem from the growth of cross-border ecommerce, tourism and migration flows.

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Keywords: ECB, European Central Bank, tips, Target Instant Payment Settlement, instant payments, Sweden, Europe, digital payments, real-time low cost payments, merchant payments, ecommerce, consumer goods payments
Categories: Payments & Commerce
Countries: Europe, Sweden
This article is part of category

Payments & Commerce