EBA CLEARING, SWIFT and The Clearing House (TCH) are working together on a new initiative, Immediate Cross-Border Payments (IXB), to speed up cross-border money transfers and make the process easier.
IXB has the backing of 11 banks that contributed to the design, seven of which participated in a proof of concept that demonstrated the successful exchange of payment messages and receipts. The proof of concept showed that IXB could “synchronize settlement in one instant payment system with settlement in the other and convert real-time messages between the two systems,” according to a press release emailed to PYMNTS Monday October 11.
The concept can be developed for more currencies and for more “cash efficient” high value payments. Bank of America, BBVA Group, Citi, HSBC, Intesa Sanpaolo Bank, JP Morgan and PNC Bank participated in the initial proof of concept.
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“By leveraging the RTP network in the US and RT1 in Europe, as well as ISO 200022 message formats, IXB demonstrates that faster cross-border payment capability is possible and can be delivered using existing technology,” said Russ waterhouse, executive vice president for product development and strategy at The clearing house.
“By using existing faster payment systems, financial institutions can leverage existing processes, protocols and technology to make the user experience seamless for all types of payment, whether domestic or cross-border,” added Waterhouse.
The initiative was created to meet the growing demands and expectations of individuals and businesses who expect cross-border transactions to have the ease of domestic payments in real time. The IXB proof of concept shows that this is possible and could work with financial institutions of all sizes and without the need for a separate network.
“IXB demonstrates how the current cross-border payments ecosystem can be enhanced and adapted to new high-volume 24/7 business,” said Erwin Kulk, responsible for the development and management of services at CLEARING THE ABE. “In combination with an international payment request, its potential applications would be limitless. “
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By using existing infrastructure, technology and standards, IXB worldwide meets the expectations of a simple and transparent way to send payments cross-border. IXB also uses the ISO 20022 message standards, which are “fully aligned with the focus areas related to speed, access, costs and transparency, described by the Committee on Payments and Market Infrastructures (CPMI ) and the Financial Stability Board (FSB) to improve border payments, ”the statement said.
“Linking market infrastructures and financial institutions is a fundamental pillar of our strategy to enable instant and frictionless transactions around the world, and one of the key elements of CPMI’s global roadmap on improving cross-border payments, ”said David watson, director of strategy for FAST.