What is T2?

24 July 2025

T2 is a payment system owned and operated by the Eurosystem. It is the leading European platform for processing large-value payments and is used by both central banks and commercial banks to process payments in euro in real time.

What are payment systems?

Modern economies rely on safe and efficient transactions. Payment systems provide the plumbing that allows the instructions and money in these transactions to flow across the economy. T2 is a payment system that EU banks use to transfer money between each other in real time. This form of transfer is known as real-time gross settlement (RTGS).

Why is T2 important?

The ECB has a keen interest in ensuring that payment systems and other market infrastructures function smoothly and effectively, to maintain financial stability in the euro area. This makes T2 a key building block of financial integration in the EU. It enables the free flow of money across borders and supports the implementation of the ECB’s single monetary policy.

How does T2 work?

The platform is owned and operated by the Eurosystem. Put simply, it works as follows:

• Bank A and Bank B both have accounts with a central bank.
• A payment in euro is to be made from Bank A to Bank B.
• Bank A submits the payment instructions to T2.
• Bank A’s account is debited and Bank B’s account is credited – the payment is settled.
• T2 transfers the payment information to Bank B

Who can use T2?

EU central banks and their national communities of commercial banks. More than 1,000 banks use T2 to initiate transactions in euro, either on their own behalf or on behalf of their customers. Taking into account branches and subsidiaries, more than 40,000 banks worldwide (and all their customers) can be reached via T2.