Brazil and Europe Explore Instant Payment Link for Faster Cross-Border Transactions

The Central Bank of Brazil (BCB) and the European Central Bank (ECB) have launched an assessment phase to evaluate the feasibility of linking Pix, the Brazilian instant payment system, with TARGET Instant Payment Settlement (TIPS), the Eurosystem's instant payment settlement service.

The evaluation will cover technical, operational, legal, and business aspects related to connecting the two public payment infrastructures. TIPS currently operates with the euro, Swedish krona, and Danish krone, with plans to expand to other European Economic Area currencies.

With significant economic and financial flows between Brazil and the euro area, a connection between Pix and TIPS could enable faster, more efficient, and lower-cost cross-border payments between the two jurisdictions. This initiative aligns with the G20 Roadmap for Enhancing Cross-Border Payments, aiming to reduce costs, increase speed, expand access, and improve transparency.