BORICA Launches Innovative TIPS Connectivity Module for Instant Payments Integration in Bulgaria

BORICA Enhances Instant Payment Interoperability with TIPS

In a groundbreaking advancement for financial technology in Bulgaria, BORICA, the country’s national payment operator, has successfully rolled out a TIPS (TARGET Instant Payment Settlement) connectivity module developed by the innovative company Montran. This strategic move allows Bulgarian banks to connect seamlessly to TIPS, the European Central Bank's instant payments service, and integrates with the existing BISERA system utilized in Bulgaria.

The new connectivity module expands the capabilities of local instant payment services. Previously functioning with the Blink service, BORICA's integration allows for eligible payments to be processed under the SCT Inst scheme in Euros, thus increasing their operational scope. This transformation not only enhances local transactions but also streamlines the processes for cross-border payments within the SEPA (Single Euro Payments Area).

Recognizing the need to future-proof its services, BORICA sought a comprehensive solution that would optimize liquidity management for its member banks while ensuring compliance with European payment regulations. Montran was poised to respond to this need, leveraging its existing instant payments platform to create a customized solution equipped with two distinct prefunding modules. One module facilitates international reach through the TIPS network, while the other supports domestic transfers via EURO INST, effectively enabling banks to manage their liquidity positions across both channels.

This enhanced infrastructure affords banks the flexibility to initiate both funding and defunding processes, leading to better financial control. The monitoring tools integrated within the solution further empower institutions with the necessary insights to track liquidity in real-time. The interface between TIPS, T2, and STEP2 facilitated via the Swift platform enables an uninterrupted flow of information, laying the groundwork for efficient and reliable payment processes.

Vania Ganeva, Head of Payment Services at BORICA, expressed enthusiasm for the far-reaching impacts of the new system, stating, "With Montran's solution, we can now provide our member banks with a streamlined and efficient way to access TIPS for instant payments. The enhanced liquidity management tools allow banks to optimize their positions across TIPS and EURO INST, ensuring operational efficiency and compliance with European standards."

Keith Esca, Global Sales Director at Montran, also highlighted the significance of this initiative. He noted, "Our collaboration with BORICA exemplifies Montran's commitment to delivering tailored solutions that address specific market needs. The successful go-live of this TIPS connectivity module highlights the strength of our partnership in driving innovation, enabling instant payments, and supporting SEPA compliance for Bulgarian banks."

Following extensive testing, this TIPS connectivity module is now officially operational, aligning Bulgaria's payment systems with the advanced European standards for instant payments and settlements. This achievement is a monumental step towards enhancing the efficiency of the national payment infrastructure and ensuring interoperability in cross-border transactions.

About Montran

Montran stands as a leader in providing Payment and Capital Market Infrastructure solutions, catering to the world's foremost financial institutions. Its innovative technologies are crucial for over 90 countries, propelling organizations to operate at peak efficiency.

About BORICA

Established as a joint stock company, BORICA has been instrumental in providing and maintaining Bulgaria's payment systems for over three decades. It is wholly owned by 19 banks in Bulgaria and continues to innovate, delivering modern solutions that propel the national payment industry forward.

Witnessing such progress, stakeholders can anticipate a more accessible and efficient financial landscape in Bulgaria, fostering ongoing economic growth and international cooperation.