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LHV UK joins TIPS to improve access to instant Euro payments
LHV UK, a leading Banking Services provider to over 200 fintech companies, joined the TARGET Instant Payment Settlement (TIPS) system to improve access to real-time Euro payments in countries where the scheme is not yet widely accepted.
Despite the Single Euro Payment Area (SEPA) Instant scheme launching in 2017, only around two-thirds of the EU’s payment service providers (PSPs) offer real-time payments. TIPS is a market infrastructure service launched by the Eurosystem in November 2018, enabling real-time money transfers in Euros 24/7, even in regions where the functionality for instant Euro payments is lacking. Eurosystem comprises of the European Central Bank and the national central banks of the EU’s Member States, whose currency is the Euro. LHV UK is the founding member and leader in instant SEPA payments, processing 7% of the transactions in Europe and considers wide access to the scheme for its clients as a priority.
As of October, outbound and inbound TIPS payments are automatically enabled for all LHV UK’s direct clients, ensuring that any bank account holder in a Euro-denominated country can be reached. Since joining the scheme, the LHV UK has seen improved real-time Euro payments coverage in the Netherlands, Poland, Italy and Spain, with more than 90% of all outgoing Euro payments now happening in real-time. This starkly contrasts the EU average, where according to the European Commission (EC), only 11% of all credit transactions are executed in real-time.
The EC is planning to change that, as the voluntary adoption of real-time payments in the block has flatlined it unveiled a draft law that would force banks to offer SEPA instant payments in Euros at no extra cost. The scheme processes the payments in seconds, regardless of the time or day throughout the year, and the block-wide uptake is expected to boost economic efficiency and support innovation.
Andres Kitter, Deputy CEO of LHV UK, said: “As one of the founding members of SEPA instant payments, providing our clients seamless access to the scheme is a priority for LHV UK – and joining TIPS gives our 500 million end customers a greater guarantee that their funds reach their end destination without delays. In just over a month, our real-time Euro payments coverage has already improved in Netherlands, Poland, Italy and Spain, with more than 90% of our payments now executed instantly.
“Having witnessed the transformative impact of real-time payments to consumers and businesses since 2017, we welcome the proposal by the EU, which intends to make instant Euro payments mandatory throughout the block at a fair price.”
In addition to SEPA instant payments, LHV UK offers a wide range of Banking Services, such as agency banking, safeguarding and multicurrency accounts, Virtual IBANs, FX and real-time GBP payments, aiming to become a one-stop-shop for all banking needs of its fintech customers.
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