What is TARGET2? How large euro payments settle between banks
By SendPay Business · · 2 min read
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.
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.
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Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
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When does a payment settle?
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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. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.