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[BUSINESS] · Brazil, EU · 24 sources

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Central Banks evaluate connecting Pix with Europe's TIPS system

The Central Bank of Brazil and the European Central Bank have launched a feasibility study to interconnect the Pix instant payment system with Europe’s TARGET Instant Payment Settlement (TIPS) infrastructure. The evaluation focuses on technical, operational, legal, and business requirements to facilitate faster and more efficient cross-border transactions between Brazil and the Eurozone.

If successful, the integration could allow international transfers and purchases to be completed in seconds, with funds settled in the recipient's local currency. This initiative aligns with the G20 Action Plan for improving cross-border payments by reducing costs and increasing transparency.

In a separate development regarding real-time international payments, Bank of America and Bradesco successfully completed a pilot transaction. The transfer, initiated via Bradesco’s existing Swift connectivity, was credited in Hong Kong dollars to a local beneficiary, demonstrating the ability to connect existing banking channels to real-time global payment resources.

Additionally, the Central Bank has updated rules for Pix proximity payments. As of October 1, the fixed R$ 500 limit for proximity transactions has been removed, allowing users to make larger payments subject to their individual account limits and financial institution security controls.

Entities

Banco Central do Brasil · Bank of America · Bradesco · Central Bank of Brazil · European Central Bank · Pix · TARGET Instant Payment Settlement · TIPS

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