The EU's alternative to Paypal is off to a slow start.
Europe’s TARGET Instant Payment Settlement (TIPS), launched by the European Central Bank (ECB) last November, aims to take business from the PayPal system. But there has been a minimal response from the banking industry so far. Only 30 banks signed up with the European Commission. The ECB invited firms to its Frankfurt headquarters on May 6-7 to submit ideas for expanding the service and build momentum.
Valdis Dombrovskis, a vice president of the European Commission, says, “In a few years, we want Europe to set new global standards for payments technology.” He stressed that TIPS and the revised Payment Services Directive (PSD2) are vital to maintaining Europe’s competitiveness in the face of technological competition from the US, China and elsewhere.
TIPS is currently available to consumers and businesses in 19 countries in the eurozone, offered via smartphones, personal computers, and in-store points of sale. The banks will benefit from contactless payment services offered by tech firms such as Apple, Google, Amazon and Alibaba through TIPS.