ECB studies TIPS-Pix link for cross-border instant payments

The ECB TIPS-Pix link is under preliminary investigation, the European Central Bank told Reuters, as it examines a possible connection between its instant-payment settlement platform and Brazil’s Pix system. The work remains exploratory, with no approved service or launch date; Reuters reported that a pilot could begin in 2028 only if the initiative proceeds as planned.

The ECB said its investigation concerns a potential interlink between TARGET Instant Payment Settlement, known as TIPS, and Pix. Brazil’s central bank declined to comment to Reuters.

TIPS is the Eurosystem platform for settling instant payments. Pix, launched by Brazil in late 2020, enables real-time bank-account transfers through banking applications. Reuters reported that Pix provides free person-to-person payments and can reduce merchant costs relative to much of the conventional card-payment chain.

What would an ECB TIPS-Pix link mean?

An interlink would seek to connect two domestic instant-payment infrastructures, potentially allowing payments to move between them. The institutions have not announced the operating design, timetable, eligible users or any live cross-border payment product.

Reuters reported that technical teams at the ECB and Banco Central do Brasil are assessing whether an interconnection is feasible. One person with direct knowledge of the discussions told Reuters that a pilot could be launched in 2028 if the work advances. That timeframe is not a commitment by either central bank.

If completed, the arrangement could represent Pix’s first cross-border expansion, Reuters reported. The ECB identified Pix in June as a “currency corridor under exploration” for TIPS, placing the Brazilian system within its broader examination of links to payment arrangements outside the euro area.

Status of the proposed connection

• Confirmed: The ECB told Reuters that a preliminary investigation into a potential TIPS-Pix interlink is ongoing.
• Reported: Technical teams are studying feasibility, according to Reuters’ sources.
• Conditional: A 2028 pilot is possible only if the project develops as planned, according to one anonymous source cited by Reuters.
• Not announced: Neither central bank has confirmed an approved service, launch schedule or operating model.

Brazil’s central bank has been considering overseas connections for Pix more broadly. Reuters reported that it said in August it was assessing links with comparable foreign payment systems. In July, it said it had signed Pix information-sharing agreements with 65 foreign counterparts.

For businesses and consumers, the significance would depend on the final structure of any link, including how participating institutions connect and how cross-border transfers are handled. Those details have not been established. For now, the ECB’s statement confirms an early-stage examination rather than an operational Europe-Brazil instant-payments corridor.

This story draws on original reporting from Finextra Research.