Global: Mastercard Joins TIPS Pilot to Advance Instant Cross-Currency Payments

Mastercard has joined a cross-currency instant payments pilot led by the central banks of Denmark and Sweden, marking a major step toward enabling faster and more seamless international money movement across European payment systems.

The initiative, built on the Eurosystem’s Target Instant Payment Settlement (TIPS) platform, is being developed in collaboration with Danmarks Nationalbank, Sveriges Riksbank, and the European Central Bank (ECB) to enable real-time payments between the euro, Swedish krona, and Danish krone.

Mastercard’s participation introduces its global money movement platform, Mastercard Move, as one of the first payment providers to process transactions using the pilot’s cross-currency functionality.

During the pilot, payments between euros and Danish kroner were settled atomically — meaning both sides of the currency exchange were completed simultaneously. This mechanism significantly reduces settlement risk by ensuring that neither leg of the transaction remains incomplete.

The programme also included the execution of inbound and outbound transaction flows under the One Leg Out Instant Credit Transfer framework, with Mastercard acting in both entry-leg and exit-leg Payment Service Provider (PSP) roles within the cross-currency payment process.

According to Mastercard, the pilot demonstrates a more efficient model for banks, fintechs, and payment providers seeking to improve cross-border payment experiences.

By combining instant transaction execution with settlement in central bank money, the model aims to deliver greater speed, transparency, and reliability in international payments.

The pilot also offers financial institutions access to central bank payment infrastructure without requiring them to independently build and maintain direct technical connectivity.

Industry experts say this could reduce integration complexity, improve liquidity management, minimise funding risks, and deliver more predictable payment outcomes for businesses and consumers.

Commenting on the development, Global Head of Transfer Solutions at Mastercard, Pratik Khowala, said the initiative signals a shift toward making international payments as seamless as domestic transfers.

“This pilot shows how cross-border payments can begin to match the speed, certainty and transparency of domestic payments,” Khowala said.

“It points to a new model where payments can move across borders and currencies with fewer intermediaries and greater predictability.”

The pilot reflects broader efforts by European regulators and payment providers to modernise cross-border transactions, an area often criticised for high costs, slow settlement times, and operational inefficiencies.

As demand for real-time global payments grows, initiatives such as the TIPS cross-currency framework are increasingly viewed as foundational to the next generation of digital financial infrastructure.