LHV UK joins TIPS to improve access to instant Euro payments
By Gloria Methri
Banking services provider LHV UK has joined the TARGET Instant Payment Settlement (TIPS) system to improve access to real-time Euro payments in countries where the scheme is not yet widely accepted.
TIPS is a market infrastructure service launched by the Eurosystem in November 2018. It enables real-time money transfers in Euros, even in regions where the functionality for instant payments is lacking.
Outbound and inbound TIPS payments will now be automatically enabled for all LHV UK’s clients, ensuring that any bank account holder in a Euro-denominated country can be reached.
Since joining the scheme in October, LHV UK says it has seen improved real-time Euro payments coverage in the Netherlands, Poland, Italy, and Spain, with more than 90% of all outgoing payments happening in real-time.
Andres Kitter, Deputy CEO of LHV UK, said, “Joining TIPS gives our 500 million end customers a greater guarantee that their funds reach their end destination without delays.”.
LHV UK is the founding member of instant Single Euro Payment Area (SEPA) payments, processing 7% of the transactions in Europe. Despite the SEPA Instant scheme launching in 2017, only two-thirds of the EU’s payment service providers (PSPs) offer real-time payments.
The EC is planning to change that, by unveiling a draft law that would force banks to offer SEPA instant payments in Euros at no extra cost.
“Having witnessed the transformative impact of real-time payments to consumers and businesses since 2017, we welcome the proposal by the EU, which intends to make instant Euro payments mandatory throughout the block at a fair price,” added Kitter.
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