TIPANET
Encyclopedia
TIPANET is an international payment system
set up by the Europe
an cooperative banks
. Its shareholder
s were Natexis Banques Populaires, France
; Banca Popolare Commercio e Industria, Italy
; Istituto Centrale delle Banche Popolari Italiane, Italy; Banco Popular de España, Spain
; Crédit Professionnel, Belgium
; The Cooperative Bank plc, United Kingdom
; Österreichische Volksbanken AG, Austria
; Geno Group, Germany
(DG BANK, GZ-Bank, WGZ-Bank), and Caisse Centrale Desjardins Quebec, Canada
.
Its commercial counterpart and partner was UNICOPAY which failed in 2004 because it was overtaken by technological innovations such as the advent of SWIFT FileAct facilities and the creation of STEP2. The UNICOPAY principals were Caisse National de Crédit Agricole-Indosuez, France; Istituto Centrale delle Banche di Credito Cooperativo, Italy; KBC Bank
(formerly CERA), Belgium; Lloyds TSB
Bank, United Kingdom; OKOBANK, Finland
; Rabobank
, Netherlands
; Raiffeisen Zentralbank, Austria and DG BANK, Germany.
Tipanet was founded in 1993 in order to manage, develop and run an efficient cross-border clearing system, in order to fulfill the "7 ECB objectives" issued around 2001 which were:
Each TIPANET member is free to seek out the most suitable international partners in the light of its business interests, its business traditions and its international trade
relations, and these arrangements are made known to other members.
The local TIPANET agent collects payment instructions and converts them into the TIPANET message format, which complies with the SWIFT MT 102+ message structure.
The TIPANET format handles credit transfers and money-cheque
s. After collecting the payment orders,the local agent compiles payment blocks and sends composite instructions to the respective foreign agents, who then convert the TIPANET message format into its domestic equivalent for local execution. The latest time for the exchange of files on any working day is 4 p.m. local time of the receiving bank
for next-day execution. Therefore the beneficiary
’s account is normally credited two working days after the order is placed.
European Central Bank Conference: TOWARDS A DOMESTIC PAYMENT INFRASTRUCTURE FOR THE EURO AREA Frankfurt am Main 7 February 2001 Elektronische. Transaktions-und Zahlungssysteme http://www.ecb.int/events/pdf/conferences/04Malz_tipa.pdf
European Central Bank Blue Book, August 2007 http://www.ecb.int/pub/pdf/other/ecbbluebookea200708en.pdf
CPSS - Red Book - 2003 Payment systems in the euro area http://www.bis.org/publ/cpss53p04eu.pdf
EC Regulation 2560/2001: study of competition for cross-border payment services final report. Project n° markt/2004/11/f, prepared for the European Commission Internal Market and Services Directorate-General http://ec.europa.eu/internal_market/payments/docs/reg-2001-2560/competition_en.pdf
Payment system
A payment system is a system used for transferring money. What makes it a "system" is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts and documentary credits such as letter of credits. With the advent of computers and electronic...
set up by the Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an cooperative banks
Cooperative banking
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world....
. Its shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
s were Natexis Banques Populaires, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
; Banca Popolare Commercio e Industria, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
; Istituto Centrale delle Banche Popolari Italiane, Italy; Banco Popular de España, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
; Crédit Professionnel, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
; The Cooperative Bank plc, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
; Österreichische Volksbanken AG, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
; Geno Group, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
(DG BANK, GZ-Bank, WGZ-Bank), and Caisse Centrale Desjardins Quebec, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
Its commercial counterpart and partner was UNICOPAY which failed in 2004 because it was overtaken by technological innovations such as the advent of SWIFT FileAct facilities and the creation of STEP2. The UNICOPAY principals were Caisse National de Crédit Agricole-Indosuez, France; Istituto Centrale delle Banche di Credito Cooperativo, Italy; KBC Bank
KBC Bank
KBC Bank N.V. is a Belgian universal multi-channel bank, focusing on private clients and small and medium-sized enterprises. Besides retail banking, insurance and asset management activities , KBC is active in European debt capital markets, domestic cash equity markets and in the field of corporate...
(formerly CERA), Belgium; Lloyds TSB
Lloyds TSB
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810...
Bank, United Kingdom; OKOBANK, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
; Rabobank
Rabobank
Rabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
; Raiffeisen Zentralbank, Austria and DG BANK, Germany.
Tipanet was founded in 1993 in order to manage, develop and run an efficient cross-border clearing system, in order to fulfill the "7 ECB objectives" issued around 2001 which were:
- Enhanced systems/services
- Priority for cross-border credit transferCredit transferCredit transfer can refer to:* The transfer of money from one account to another, also called a wire transfer* The procedure of granting credit to a student for studies completed at another school, also called transfer credit or advanced standing....
s - Lower prices for cross-border credit transfers
- Settlement time should be comparable for domestic and cross-border payments
- Fees borne by the originator (OUR-payments)
- Access to cross-border retail payment systems
- Standard implementations
Each TIPANET member is free to seek out the most suitable international partners in the light of its business interests, its business traditions and its international trade
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
relations, and these arrangements are made known to other members.
The local TIPANET agent collects payment instructions and converts them into the TIPANET message format, which complies with the SWIFT MT 102+ message structure.
The TIPANET format handles credit transfers and money-cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
s. After collecting the payment orders,the local agent compiles payment blocks and sends composite instructions to the respective foreign agents, who then convert the TIPANET message format into its domestic equivalent for local execution. The latest time for the exchange of files on any working day is 4 p.m. local time of the receiving bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
for next-day execution. Therefore the beneficiary
Beneficiary
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example: The beneficiary of a life insurance policy, is the person who receives the payment of the amount of insurance after the death of the insured...
’s account is normally credited two working days after the order is placed.
PDF Reference Documents
Downloadable 25 March 2010European Central Bank Conference: TOWARDS A DOMESTIC PAYMENT INFRASTRUCTURE FOR THE EURO AREA Frankfurt am Main 7 February 2001 Elektronische. Transaktions-und Zahlungssysteme http://www.ecb.int/events/pdf/conferences/04Malz_tipa.pdf
European Central Bank Blue Book, August 2007 http://www.ecb.int/pub/pdf/other/ecbbluebookea200708en.pdf
CPSS - Red Book - 2003 Payment systems in the euro area http://www.bis.org/publ/cpss53p04eu.pdf
EC Regulation 2560/2001: study of competition for cross-border payment services final report. Project n° markt/2004/11/f, prepared for the European Commission Internal Market and Services Directorate-General http://ec.europa.eu/internal_market/payments/docs/reg-2001-2560/competition_en.pdf