SWIFT has announced that it has been certified by the Eurosystem to provide connectivity to the TARGET Instant Payment Settlement (TIPS) as from its go live date on 30 November 2018. SWIFTNet Instant, which will be launched in November 2018, will offer seamless connectivity to multiple clearing and settlement mechanisms (CSMs). This means customers will not have to build bespoke links to each system but will have access through a single interface to multiple instant payments systems in Europe for both domestic and cross-border payments. In the first instance, this will include TIPS and RT1, the instant payment services offered by the Eurosystem and EBA Clearing respectively.
SWIFT customers will be able to transition to instant payments by leveraging existing investment in their SWIFT infrastructure. They will also have the reassurance of working with known and proven processes, and will be offered complete on-boarding services to reduce risk and manage costs. SWIFT’s solution for TIPS is designed as a key building block for access to the future Eurosystem Single Market Infrastructure Gateway (ESMIG).
The next major milestone for ESMIG will be the T2/T2S consolidation in 2021. Adapting their systems and processes to access this single European gateway will be one of the most crucial tasks facing European financial institutions in the coming years. By implementing SWIFTNet Instant, customers will be adopting a future-proof solution that will facilitate their migration to ESMIG.