Under which financial infrastructure is TIPS operated?

TIPS, which stands for Target Instant Payment Settlement, operates under TARGET2, the real-time gross settlement (RTGS) system for the Eurozone. TARGET2 is an essential banking infrastructure for handling large-value euro transactions in real-time. TIPS was specifically designed to facilitate instant payments in euros and is fully integrated into the TARGET2 framework.

By utilizing TARGET2, TIPS ensures that payments can be settled quickly, securely, and efficiently, thereby allowing for near-instantaneous transaction finality. This integration is crucial for achieving the broader objective of promoting faster payment systems across Europe.

Other systems like SWIFT, SEPA, and RTGS each have their own functionalities and purposes, but they do not provide the same instant payment settlement capabilities that TIPS offers within the TARGET2 context.