EBA CLEARING, SWIFT and The Clearing House (TCH) is to launch a pilot service for immediate cross-border (IXB) payments to improve cross-border payments by utilising the fastest domestic payment options.
The pilot service is scheduled to begin by the end of this year, with the support of 24 banks that are to join the service in a phased approach — including BNY Mellon, BNP Paribas, J.P. Morgan and Societe Generale.
The initiative follows a proof of concept completed in October 2021, with the contribution of seven financial institutions.
The proof of concept demonstrated the ability to synchronise settlement in one instant payment system with settlement in the other and to convert real-time messages between both systems.
Based on ISO 20022 message standards, SWIFT Go and the instant payment systems of EBA CLEARING and TCH, the service will initially support instant payments in US dollars and Euros. It is likely to be extended to other currency channels and payment systems in the future.
The key features of the service will be aligned with the focus areas related to speed, access, cost and transparency, as outlined by the Committee on Payments and Market Infrastructures and Financial Stability Board for enhancing cross-border payments.
The IXB pilot service is likely to be followed by a full service offering in 2023.
Russ Waterhouse, executive vice president for product development and strategy at The Clearing House, says: “The trans-Atlantic pilot service will provide valuable input for the development of a fully-fledged IXB service to meet customer expectations across the globe.”
Erwin Kulk, head of service development and management at EBA CLEARING, comments: “Aside from delivering a simple and transparent service for end users, our key aim is to keep things easy for financial institutions: the fact that there is no need to connect to a separate payment system should make the service very attractive for RT1 and real-time payment participants of all sizes.”
David Watson, chief strategy officer at SWIFT, comments: “The interlinking of instant payment systems promises a new way of moving money across borders safely, quickly, and at low cost. We look forward to supporting the development of the IXB pilot service.”
