The European Central Bank has outlined plans to build an instant payment settlement system that will let people and businesses send money anywhere in the euro area within seconds.
Slated to go live in November 2018, the Target instant payment settlement (Tips) platform will offer real-time money transfer via banks around the clock, 365 days a year, in the 19 euro countries.
Currently, it can take up to one business day for money transfers to make their way across the eurozone.
The ECB says it will work closely with banks on the service, which will be offered to them at the "low price" of 0.2 cents per payment for at least the first two years of operation.
Several countries, including Italy and Spain, already have instant payments but the ECB wants a bloc-wide system to promote integration.
Earlier this year, ECB executive board member Yves Mersch said that Tips would help participants to comply with the Sepa Instant Credit Transfer (SCT Inst) scheme by providing pan-European reachability.
Common functionalities across jurisdictions should ensure harmonisation of practices and market integration in the settlement of instant payments.