ECB advances TIPS and fast payments interlinking initiative

Core Insights - The European Central Bank (ECB) Governing Council is advancing efforts to connect the TARGET Instant Payment Settlement (TIPS) system with global real-time payment networks, including India's Unified Payments Infrastructure (UPI) [1][2] - This initiative aims to enhance cross-border payment processes for European businesses and individuals, particularly in remittances [1][4] Group 1: TIPS and UPI Connection - The ECB has moved to the realization phase for linking TIPS with UPI, which includes finalizing legal frameworks and completing technical preparations [2] - The council is also exploring the integration of TIPS with Nexus Global Payments while working on necessary legal agreements [2] Group 2: Broader Payment Strategy - The ECB is evaluating the potential connection of TIPS with the Swiss Interbank Clearing Instant Payments platform, aligning with the Eurosystem's retail payments strategy and the G20's roadmap for improving cross-border payments [3] - The initiative aims to strengthen the euro's global standing and expand connections to more international payment corridors in the future [4] Group 3: UPI and Nexus Global Payments - UPI, managed by the National Payments Corporation of India, processes one of the largest volumes of instant payment transactions globally and is a significant destination for remittances from the euro area [4] - Nexus Global Payments is designed to link fast payment services across several Asian markets, with its initial phase connecting systems in Malaysia, Singapore, the Philippines, India, and Thailand [5]