Since 2020, Norges Bank has been exploring an expansion of its role in the settlement of instant payments. Over the past two years, Norges Bank has assessed the feasibility of settling instant payments in Norwegian krone (NOK) in TIPS and been in formal discussions with the European Central Bank (ECB) on participation in TIPS. 

The conclusion is that participation in the Eurosystem’s TIPS service is best suited for developing Norwegian instant payments ahead. Issues such as costs, contingency arrangements and the ability to facilitate special Norwegian requirements have been key elements in the evaluation. 

Norges Bank has therefore decided to continue formal discussions with the ECB to reach an agreement for the settlement of instant payments in central bank money. 

Instant payments ensure that payees receive funds directly in their accounts seconds after the payment is initiated - 24 hours a day, seven days a week. A well-functioning instant payments solution is an important part of an efficient payment system. Participation in TIPS means that instant payment settlement between banks takes place in TIPS, on behalf of Norges Bank. This will ensure the development of the infrastructure for instant payments in NOK in line with developments in the Nordic countries and the rest of Europe. 

TIPS was launched in November 2018 and settles payment transfers in euro (EUR) and Swedish krona (SEK). The Danish krone (DKK) will be integrated in spring 2025. 

See further discussion of TIPS in Norges Bank’s report Financial infrastructure 2024. 

See also press release on TIPS discussions dated November 2021.