Key Takeaways
- The ECB is exploring a link between TIPS and Brazils Pix to enable faster, cheaper EU-Brazil payments.
- Connecting the systems creates a low-cost alternative to SWIFT, reducing reliance on US dollar networks.
- The ECB plans further links with Indias UPI and Swiss networks to expand global euro payment reach.
Europe to Test Interlinking Its Payment System With Brazils Pix
The ECB is taking the first steps to expand its payments infrastructure by linking its systems to other international payment networks.
On Thursday, the bank announced that it was evaluating the feasibility of interlinking the TARGET Instant Payment Settlement (TIPS) platform with Brazils Pix, a national rapid payment network, as part of the G20 cross-border payments roadmap. In a press release, the institution declared it would “explore the potential for interlinking TIPS and Pix by assessing technical, operational, legal, and business considerations”in close collaboration with the Central Bank of Brazil.
As economic flows between the EU and Brazil grow, the ECB highlighted that this connection could enable faster, lower-cost instant payments for both retail and institutional users in the two regions. Brazil is the EUs tenth-largest partner, with over €87 billion (nearly $100 billion) in bilateral trade registered in 2025.
While TIPS currently settles real-time payments in euros, Swedish krona, and Danish krone, it can also be adapted to use multiple other currencies, potentially allowing the inclusion of Brazilian reais.
A combined EU-Brazil system could represent an alternative to SWIFT settlements, reducing dependence on U.S. dollar-controlled networks. The U.S. has heavily criticized Pix, pointing out that it drives competitors out of the Brazilian payments market as it facilitates over 250 million payments daily settled with low fees.
The move would also support the internationalization of the Euro, a point that has been considered a pillar of the European Commission strategy since January 2021 in its“The European economic and financial systems: fostering openness, strength and resilience”communication, and has been reinforced with the recent push to accelerate the issuance of the digital euro.
Besides this integration, the ECB also seeks to establish a link with the Unified Payments Interface (UPI), which drives over 80% of all digital payments in India, and with the Swiss Interbank Clearing Instant Payments system developed by the Swiss National Bank.