BORICA Enhances Cross-Border Instant Payment Interoperability in Bulgaria with New TIPS Connectivity Module

Enhancing Payment Efficiency in Bulgaria

In a significant advancement for Bulgaria’s payment landscape, BORICA, the national payment operator, has unveiled a new module that enhances its connectivity to TARGET Instant Payment Settlement (TIPS). This initiative, developed in collaboration with Montran, aims to streamline cross-border instant payments, aligning Bulgaria's financial infrastructure with European standards.

What is TIPS?

TIPS is a service provided by the European Central Bank (ECB) that enables the instant transfer of payments across EU nations. This service is crucial for increasing the efficiency of financial transactions, particularly for those engaged in international business or trade. By adopting TIPS, BORICA aims to facilitate quicker and more secure transactions for Bulgarian banks.

Integration with Local Systems

The newly launched TIPS connectivity module integrates seamlessly with Bulgaria's existing payment infrastructure, including BISERA, enhancing the capabilities of the current local payment service, Blink. This integration allows for transitional payment schemes such as SCT Inst, enabling euro payments both locally and within the SEPA (Single Euro Payments Area). This newfound efficiency is poised to enhance the liquidity management capabilities of member banks, offering a modernized approach to financial transactions.

Future-Ready Solutions for Member Banks

BORICA sought a comprehensive and future-proof solution that would not only enable access to TIPS but also improve how liquidity is managed by its member banks. Montran responded to this need by introducing tailored enhancements, which include two pre-financing modules: one dedicated to TIPS for international accessibility and another for EURO INST, focusing on national transfers.

This dual-module architecture empowers banks to manage their liquidity positions dynamically across both payment systems through unified interfaces, allowing them flexibility in fund allocation—whether to finance or defund their transactions.

Advanced Monitoring Features

The connectivity module includes advanced liquidity controls and monitoring functionalities, ensuring that banks can maintain oversight over their transactions in real-time. The integration process aligns with other systems such as T2 and STEP2 via Swift, further solidifying the operational infrastructure of Bulgaria’s instant payment systems.

Positive Feedback from Industry Leaders

Vania Ganeva, BORICA's Director of Payment Services, expressed her enthusiasm regarding the new module: "With Montran's solution, we can offer our banking members a streamlined and effective pathway to access TIPS for instant payments. Enhanced liquidity management tools enable banks to optimize their liquidity positions within both TIPS and EURO INST, ensuring operational efficiency and compliance with European regulations."

Meanwhile, Keith Esca, Montran’s Global Sales Director, highlighted the significance of this collaboration. "Our partnership with BORICA illustrates Montran’s commitment to deliver customized solutions addressing specific market needs. The successful implementation of this TIPS connectivity module showcases the strength of our partnership in driving innovation, enabling instant payments, and supporting SEPA compliance for Bulgarian banks."

Conclusion

Following extensive testing, BORICA's TIPS connectivity module is now fully operational, marking a pivotal moment in the enhancement of Bulgaria’s payment efficiency and cross-border interoperability. As Bulgaria continues to modernize its financial infrastructure, this step brings the country closer to fully integrating with European payment systems, promoting smoother transactions for both businesses and consumers.

About Montran

Montran is a leading provider of payment infrastructure and capital markets solutions, serving major financial institutions worldwide with mission-critical facilities and operations across more than 90 countries. More information can be found at www.montran.com.

About BORICA

Established as a public limited company, BORICA is owned by 19 banks in Bulgaria and has developed and currently operates the country’s payment infrastructure. Having been a trusted partner for the public sector, financial institutions, and payment systems for over 30 years, BORICA is dedicated to providing innovative and modern solutions to the financial sector.