BoG: The new TARGET Instant Payment Settlement model is in operation

The new model of direct payments settlement in the Greek component of the TARGET 2 payment system managed by the Bank of Greece is put into operation today, December 10, 2021. The new TARGET Instant Payment Settlement (“TIPS”) model replaces the different direct payment schemes adopted in individual countries, creating a single scheme with single features and full interoperability across the Eurozone.

The transition to the new scheme, with the participation of most Greek credit institutions through the DIAS retail payment system, results in the possibility of making direct payments domestically and across borders with uniform rules and procedures throughout the Eurozone. With this in mind, direct payments become much more user-friendly, creating the prospect of their wider adoption as a means of payment by the public.

Direct payments within the TIRS scheme now provide the possibility of trading by the public on a daily basis, every day of the year and around the clock. It is noted that the simple transfer of credits through SEPA, which is currently the most common means of interbank retail payments, is carried out within one working day, while now the execution of payment in TIPS is completed and settled in just 10 seconds, whether it is domestic or cross-border.

It is emphasized that the ability to make direct payments from the general public in a fast and secure way is an important part of the strategy of the European Union and the Eurosystem in the field of retail payments and is supported by relevant business actions and decisions, with active participation of the Bank of Greece.