Eurosystem sets policy on access by non-bank PSPs to its CB payment systems - 0 views
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John Kiff on 21 Jul 24The Eurosystem defined a harmonized policy to allow non-bank payment service providers (PSPs) to access central bank-operated payment systems, including TARGET. Non-bank PSPs include payment institutions (PIs) and electronic money institutions (EMIs). The broader access criteria for TARGET are aimed at enhancing the efficiency of the European retail payments market, fostering competition and innovation in the European payments landscape, and supporting the uptake of instant payments in the European Union. Starting in April 2025, non-bank PSPs meeting certain requirements will be able to access TARGET, including T2 (for settling payments) and TIPS (for settling instant payments). The Payment Services Directive was also amended to introduce the option for non-bank PSPs to safeguard users' funds in an account held with a central bank, subject to the discretion of that central bank.