What is TARGET2? How large euro payments settle between banks
By SendPay Business · · 2 min read
- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
TARGET2 is the system the Eurosystem (the European Central Bank and the national central banks of the euro area) uses to settle large euro payments between banks. In March 2023 it was replaced by a new platform called T2, but many people and banks still use the old name.
What it does
- Settles payments between banks in central bank money, one at a time and in full, as they happen.
- Carries large and urgent euro payments, including many between businesses.
- Settles the net positions of other euro payment systems.
TARGET2 vs SEPA
SEPA is a set of common rules and formats that make everyday euro transfers work the same way across Europe. Many SEPA payments are cleared through other systems, with the final positions settled in T2. T2 is the settlement layer underneath, built for large, final, same-day payments.
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What it does
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What changed with T2
The move to T2 brought in the ISO 20022 message standard, which carries richer payment details, such as fuller names and addresses, than older formats.
Where SendPay fits
SendPay platforms give your customers EUR accounts alongside GBP and USD, with transfers under your own brand and powered by licensed partners.
How it works
Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
When does a payment settle?
Work out the value date, skipping weekends and bank holidays.
Value date calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.