2025-10-06
Non-bank payment institutions can already have direct access to the TARGET payment system
The electronic money institutions (EMIs) and payment institutions (PIs) that provide payment services can now avail of the opportunities offered by the Eurosystem’s TARGET payment system. This is relevant for payment service providers that process large volumes of transactions and participate in settlements within several systems.
Starting from 6 October, EMIs and PIs can have direct access to TARGET, with the exception of the part of the T2S system used for securities settlement. The aim is to increase the efficiency of the European retail payments market, promote competition and innovation, provide more choice for consumers, and support the development of instant payments in the European Union.
By participating in TARGET, payment service providers have the possibility:
- reach more than 39,000 system participants directly when making payments;
- execute settlements in central bank money, thereby reducing credit and settlement risk;
- manage liquidity independently, without relying on commercial banks or third-party infrastructure;
- use the same infrastructure as banks, which is of particular importance for efficiency, transparency, and operational resilience;
- directly access the Eurosystem’s settlement solutions, including the TIPS platform for instant payments.
Non-bank participants wishing to participate in the system must meet strict conditions to ensure that their participation does not pose a risk to financial stability.
The possibility to connect directly to the TARGET system arose with the entry into force of Guideline ECB/2025/28 of the European Central Bank, which allows national central banks to grant access to TARGET to non-bank payment service providers at their discretion.
The TARGET payment system, administered by the Eurosystem, ensures the free movement of cash, securities and collateral in Europe. TARGET services include T2 (payment settlement), T2S (securities settlement) and ECMS (collateral management).
Until now, only banks and other credit institutions had direct access to TARGET.
Applications to participate in TARGET are examined and decisions are made by national central banks. In Lithuania, access to TARGET is managed by Lietuvos bankas.
More information about TARGET, access options and answers to frequently asked questions can be found on Lietuvos bankas’ website.