Sweden joins ECB’s instant payments settlement platform

The Swedish central bank (Sveriges Riksbank) has concluded an agreement with the European Central Bank (ECB) to access the Eurosystem’s TARGET Instant Payment Settlement (TIPS).

Electronic payments made in Swedish krona can be settled on the settlement platform, which is operated by the Eurosystem. It will also support the growth of the Swedish instant payment service, RIX-INST.

TIPS enables providers of payment services to transfer and settle their customers’ funds in real-time, around the clock, every day of the year, as well as payments in central bank money. It has been in use in the euro area since November 2018 to settle instant payments in euro, with the intention of expanding the settlement service in other currencies in due course.

Sweden is one of the most advanced European countries in terms of use of instant payments, with the daily average number of instant payments in Sweden in excess of 1.5 million per day.

The agreement was signed by ECB President Christine Lagarde, the Governors of the Eurosystem’s 19 national central banks, and Sveriges Riksbank Governor Stefan Ingves.

“In crisis times, this agreement is a good example of strong cooperation between central banks in Europe,” said ECB President Christine Lagarde. “Our real-time settlement platform is a pivotal contribution to Europe’s endeavours to satisfy citizens’ increasing demand for faster, cheaper and convenient payment services without compromising on security.”