Payments do not stop at national borders. Every day, businesses, banks and people transfer money to other countries or from one currency to another. The Eurosystem is constantly working to ensure that such payments become faster, cheaper and more transparent.
What are cross-border payments? What are cross-currency payments?
International payments can be cross-border and/or cross-currency payments.
Cross-border payments are payments made from one country to another – for example, from Austria to Italy or from Austria to Switzerland. Another currency only comes into play if one of the two countries involved is outside the euro area.
Cross-currency payments are payments made from one currency to another – for example, from euro to Swiss franc. In this case, the amount must be converted into the desired currency.
What is the purpose of international payments?
International payments enable businesses to carry out international financial transactions. With international payments, trading in goods and services across national borders becomes possible for people and businesses. This means that international payments are important for the economy.
What is the Eurosystem doing to facilitate international payments?
The Eurosystem is committed to making international payments faster, cheaper and more transparent, whilst at the same time strengthening the euro’s international role.
The Eurosystem is a key player in the Single Euro Payments Area (SEPA) and is also constantly adapting its own payment systems to new needs and requirements.
Since October 2025, a new feature has been available for cross-currency payments in TIPS, the TARGET service for instant payments. It was developed by the Eurosystem in collaboration with the Danish and Swedish central banks.
Thanks to this new feature, people and businesses from Denmark or Sweden can now initiate payments in their national currency via TIPS. The payees receive the corresponding euro amount within seconds.
In future, participants from other countries outside the euro area will also be able to use this TIPS function, provided that their central banks support it.