ECB-TIPSRA

ECB TIPS RA Reachability Add-on SCT Inst.

Definition

TIPS Reachability Add-on (TIPS RA) detail: (1) Context: TIPS (TARGET Instant Payment Settlement) launched by ECB November 2018, central euro instant payments settlement infrastructure central bank money in TARGET2. (2) Fragmentation problem: Eurozone PSPs traditionally connected various CSMs (EBA RT1 + EQUENS + Iberpay + Sepa Hub Italy + etc.), each CSM had its own reachable PSPs, customer of bank A connected to RT1 could not seamlessly send instant payment to customer of bank B connected to EQUENS, fragmented Eurozone SCT Inst landscape. (3) TIPS RA: ECB mandate effective 9 February 2024 (initially planned 2022 delayed), all Eurozone PSPs offering SCT Inst (SEPA Credit Transfer Instant) must be reachable through TIPS, either directly TIPS connected or indirectly via CSMs connected to TIPS. (4) Effect: pan-European reachability for instant payments, customer of any bank can send instant payment to customer of any other bank within seconds + 24/7/365 + max EUR 100000 per transaction. (5) Volumes: SCT Inst usage grown rapidly 2024+ post-TIPS RA mandate, ~30% SEPA Credit Transfers expected become Instant by 2026, EU Instant Payments Regulation 2024 mandates SCT Inst availability all Eurozone banks 2024-2025 + same cost as SCT.

Origin

TIPS launched ECB November 2018 ; TIPS RA Reachability Add-on initially planned 2022 ; delayed effective 9 February 2024 ; EU Instant Payments Regulation 2024 supports.

Example in context

Sparkasse Cologne customer sends EUR 5000 instant payment to BNP Paribas Paris customer via TIPS Reachability Add-on: transaction processed in <10 seconds 24/7, BNP recipient instant funds availability, SCT Inst standard ISO 20022 pacs.008 message format, transaction fee ~EUR 0.50 similar SCT non-instant cost.

Related terms

• ECB Eurosystem — central operator.