Central Bank of Iceland details final tender preparations to expand payment channels

The Central Bank of Iceland is in the final stages of preparing a tender for infrastructure supporting payments for goods and services through transfers between accounts, Deputy Governor for Financial Stability Tómas Brynjólfsson told the Money Live Nordic Banking conference in Copenhagen. The infrastructure would make it easier for banks and payment service providers to offer these payments, broadening the channels available and reducing dependence on any single solution. Brynjólfsson outlined an approach that combines international integration with domestic capacity and preparedness for severe disruptions. He referred to the bank’s previously signed agreement with the European Central Bank to join the Eurosystem’s TARGET Instant Payment Settlement system (TIPS). That agreement provides for instant settlement of Icelandic króna payments in central bank money from 2028, alongside a domestic contingency solution if TIPS becomes unavailable. Within this approach, central banks provide shared infrastructure, while banks and payment service providers develop customer services.