- Norway will add the krone to the Eurosystem’s Target Instant Payment Settlement (TIPS) service by the first half of 2028, following the Swedish and Danish krona next year.
- This move enables instant, 24/7 payments in central bank money, aligning with the Eurosystem’s broader strategy to link real-time payment networks globally, including the upcoming integration with Project Nexus.
What happened: Instant payment service
Norway has agreed to add the krone to the Eurosystem’s Target Instant Payment Settlement (TIPS) service, with plans for inclusion in the first half of 2028. This follows the addition of the Swedish krona and Danish krone, expected next year.
The move will allow Norwegian participants to settle payments instantly, 24/7, in central bank money. Norges Bank governor Ida Wolden Bache stressed that instant payment systems are crucial for an efficient financial infrastructure. “The agreement with the ECB ensures the krone’s instant payment system will develop in line with changes in the Nordic region and Europe,” she said.
This initiative forms part of the Eurosystem’s wider strategy to link real-time payment networks beyond the EU. In October, the Eurosystem announced plans to integrate TIPS with Project Nexus, a global initiative by the Bank for International Settlements aimed at connecting instant payment systems worldwide.
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Why it is important
The inclusion of the Norwegian krone in the Eurosystem’s Target Instant Payment Settlement (TIPS) service is significant for several reasons. It allows Norwegian participants to make instant, 24/7 payments in central bank money, enhancing payment efficiency. As Norges Bank governor Ida Wolden Bache noted, instant payment systems are vital for a robust financial infrastructure. This move ensures Norway’s payment system keeps pace with developments in the Nordic region and Europe.
Additionally, it supports the Eurosystem’s wider strategy to connect real-time payment networks beyond the EU. By linking TIPS with Project Nexus, a global initiative, this step strengthens Norway’s position in the evolving international payments landscape. With instant payments becoming a global standard, this integration will improve cross-border transactions and bolster financial stability, benefiting both businesses and consumers in Norway and beyond.
