The European Central Bank (ECB) and the Eurosystem central bank (Eurosystem) will now launch a system that will enable continuous settlement of direct payments in the area of common currency and will be open to other EU members.
The new instant settlement settlement solution settlement system Instant Time Payment Settlement represents the real-time real-time gross settlement of the Target2 payment system in real-time, enabling direct central bank money to be settled directly. This is primarily intended for solving urgent payments and large payments.
The tips also represent the upgrade of the Single Euro Payments Sector (SEPA), which represents a single low-value euro payment market and enables direct debit and payment between members who are equal to domestic transactions in speed and simplicity. Sepa did not fully revive in the summer of 2014.
Meanwhile, technology has been advancing, and e-commerce and smartphone development have received Instant Payments in terms of speed and availability that are equivalent to cash payments.
Currently, electronic payments due to different procedures of banks and clearing companies in their settlement and settlement are not immediate, so payments can often be made with one or even several days of delays. In the last few years, there have been several national settlement systems for instant payments across Europe.
But such a development could risk a new fragmentation of payment systems in the eurozone or across the European Union and European payment service providers, they agreed on a set of rules and standards for instant payments called the Instant Credit Scheme scheme.
24 hours a day, 365 days a year
The ECB or the Eurosystem has developed a system of advice that will enable clearance and settlement of direct payments 24 hours a day, 365 days a year to help this process. The ECB promises that transactions will be safe and extremely fast, while the costs of participating banks and other financial institutions in the system are low.
The federal system will gradually revive. In the first step since today, eight banks are expected to participate, and most banks will be involved by 2020. According to Slovenian banks' responses, they usually entered the Council system in the second half by the end of next year.
In the first phase, only the financial institutions in the eurozone should operate in the system and in the second step will be open to EU members outside the euro area and some countries outside the EU, both for transactions with the euro and for transactions in other national currencies.
Slovenia will introduce a new system
Meanwhile, Slovenian banks are also involved in establishing an immediate payment system within the domestic payment system, as most payments are still made within the national borders. The scheme was created under the auspices of a banking company that will include all Slovenian banks and savings banks. The start of operation of this payment system is scheduled for February 2019.