ECB weighs linking TIPS to Brazil’s 250-million-a-day Pix payment network

The European Central Bank (ECB) announced Thursday that it is examining whether the TIPS Payment System can be linked with Brazil’s Pix as part of the G20 roadmap for improving cross-border payments. The initiative, being assessed in cooperation with the Central Bank of Brazil, could create a new channel for instant payments between the European Union and Brazil.

The proposed connection would expand the international reach of the TIPS Payment System, formally known as TARGET Instant Payment Settlement. The ECB said the assessment will consider the technical, operational, legal and business requirements involved in connecting the two payment infrastructures.

The ECB said 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.

The assessment comes as economic ties between the EU and Brazil continue to develop. Brazil was the European Union’s 10th-largest partner, with bilateral trade exceeding €87 billion, or nearly $100 billion, in 2025.

For the ECB, the proposed integration would give the TIPS Payment System a pathway toward supporting transactions involving Brazil’s domestic payment infrastructure. Pix is Brazil’s national instant-payment network and processes more than 250 million payments daily, according to the material cited in the announcement.

TIPS Payment System could support euro-real payments

The TIPS Payment System currently provides real-time settlement in euros, Swedish kronor and Danish kroner. However, the infrastructure can be adapted to support multiple currencies, potentially creating a technical basis for incorporating Brazil’s real into a future EU-Brazil payment arrangement.

If implemented, the connection could allow payments between users in the two regions to move through linked instant-payment infrastructures rather than relying exclusively on conventional cross-border settlement arrangements.

The proposed TIPS Payment System link is therefore being considered within a broader effort to make international payments faster and less expensive. The ECB’s announcement did not establish a timetable for implementation, and the feasibility assessment must first address technical, legal and operational issues.

The initiative is also part of the G20 Cross-Border Payments Roadmap, which seeks to improve the speed, cost, transparency and accessibility of international payments.

For businesses and consumers engaged in EU-Brazil transactions, the potential benefits would depend on how the two systems are ultimately connected and how participating financial institutions implement the service.

Europe expands international payment infrastructure

The proposed TIPS Payment System integration with Pix also forms part of a wider effort by European authorities to increase the international reach of European payment infrastructure.

The ECB is separately examining potential links with India’s Unified Payments Interface (UPI), which accounts for more than 80% of digital payments in India, according to the supplied report. The central bank is also seeking a connection with the Swiss Interbank Clearing Instant Payments system developed by the Swiss National Bank.

Taken together, these initiatives could extend the reach of the TIPS Payment System beyond its existing European settlement environment. Rather than focusing on a single bilateral corridor, the ECB is examining connections with several major instant-payment networks.

The approach could also support the broader international use of the euro. The European Commission has identified the international role of the euro as part of its strategy for strengthening the openness and resilience of Europe’s economic and financial system.

The ECB’s work on the TIPS Payment System also comes as European institutions continue efforts surrounding the digital euro. The expansion of instant-payment infrastructure could complement those broader initiatives by strengthening the systems through which euro-denominated payments are settled.

TIPS Payment System and the future of cross-border payments

A potential EU-Brazil connection involving the TIPS Payment System could provide an alternative route for certain international transactions traditionally handled through established correspondent-banking and messaging arrangements.

The proposal has also drawn attention because of the different approaches taken by national payment systems. Brazil’s Pix has developed into a major domestic instant-payment network, while the ECB has built TIPS as part of Europe’s real-time payment infrastructure.

The TIPS Payment System could eventually provide a settlement layer for transactions involving the Brazilian real if the technical and regulatory requirements can be addressed. However, the ECB has not announced that the connection will proceed; it has only begun examining its feasibility.

The discussion also comes against the backdrop of criticism from U.S. authorities regarding Pix. The supplied report notes that the United States has argued that Pix can disadvantage competitors in Brazil’s payments market. Those concerns remain separate from the ECB’s technical assessment of whether European and Brazilian payment infrastructures can be connected.

For now, the TIPS Payment System proposal remains at the feasibility stage. The ECB and the Central Bank of Brazil must determine whether the systems can be integrated while meeting technical, operational, legal and commercial requirements.

If the assessment supports further development, the TIPS Payment System could become part of a broader network of interconnected instant-payment platforms spanning Europe, Brazil, India and Switzerland. Such connections would represent another step in the international development of real-time payment infrastructure, while the practical impact would depend on the final design and implementation of each link.