The new TARGET Instant Payment Settlement (TIPS) system will allow for instant money payments via banks, allowing both citizens and firms to make instant retail payments in the eurozone.
It builds on the TARGET 2 settlement system, used for processing large-scale euro payments, and, according to the ECB, will “make sure that the demand for instant payments is met at European level and further facilitate the integration of the euro area”.
Scheduled to start operation in November 2018, TIPS will be available 24 hours a day, and 365 days a year. According to the ECB, it will cost a maximum of €0.002 per payment for its first two years of operation.
It will be developed in close cooperation with the European banking industry.