ECB Explores Linking Europe’s Instant Payment Rail With Brazil’s Pix

The European Central Bank (ECB) is exploring the possibility of linking Europe's instant payment system, TARGET Instant Payment Settlement (TIPS), with Brazil's Pix system, the bank announced in a press release on September 24. The ECB's governing council approved the launch of an assessment, which will involve technical, operational, legal, and business considerations, in collaboration with Brazil's Central Bank, according to the release.

The ECB highlighted the significance of economic flows between the euro area and Brazil, stating that an interlinking of the two payment systems could enable faster and lower-cost instant payments between the two regions. This assessment aligns with the Eurosystem's comprehensive payments strategy, which aims to enhance the integration of global cross-border payments by improving the existing infrastructure.

Reuters reported earlier that a pilot project could be launched in 2028, marking the first cross-border expansion of Pix. In August, the Central Bank of Brazil expressed a stronger commitment to linking Pix with instant payment systems in other countries. A PYMNTS Intelligence report found that Pix has experienced unprecedented growth and has emerged as one of Brazil's most preferred payment methods, contributing to the widespread adoption of instant payments in Latin America.

The ECB established TIPS to create a more streamlined, interoperable payment network across Europe and has been actively expanding the TIPS infrastructure beyond the eurozone.