The planned new functions will include enhanced timed payments, EBA Priority Payment Scheme payments and RTGS-assured payments. An optional payment confirmation capability will also be available, providing a time stamped advice confirming that funds have been credited to the next clearing bank.

The US bank says it will also offer "new flexible options" to reduce the impact of third-party charges, but has released few details.

Julie Monaco, core cash management business executive, says the bank views the Target2 scheme as an important catalyst for change to the euro payments environment.

"JPMorgan’s Target2 initiative will give customers greater flexibility and greater certainty when making euro payments," she says.

The new EU-wide real-time gross settlement (RTGS) system, Target2 is slated for a phased introduction beginning in November 2007, with two subsequent migration waves for users moving to the uniform network.

JPMorgan’s entry point to Target2 will be JPMorgan AG, which the bank says is the second-largest member of the German RTGS clearing system, based on daily average value of payments.