The Bank for International Settlements and the Monetary Authority of Singapore have published a blueprint for the multilateral linking of domestic real-time payement systems across borders. The blueprint builds on the bilateral linkage between Singapore’s PayNow and Thailand’s PromptPay, and benefits from the experience of the National Payments Corporation of India’s (NPCI) development and operation of the Unified Payments Interface (UPI) system. Titled Project Nexus, the model envisages the creation of ‘Nexus Gateways’ that serve to coordinate compliance, foreign exchange conversion, message translation and the sequencing of payments among all participants. This is complemented by an overarching Nexus Scheme that sets out the governance framework and rulebook for participating retail payment systems, banks and payment service providers to coordinate and effect cross-border payments through the network. Project Nexus is trying to achieve the equivalent of internet protocols for payments systems. That means creating a model through which any country can join by adopting certain technical and governance requirements. Under the Nexus blueprint, participating countries will only need to adopt the Nexus protocols once to gain access to the broader cross-border payments network. This removes the need for countries to negotiate payment linkages with each jurisdiction on a bilateral basis.
financial messaging services company SWIFT has launched SWIFT Go, a service that transmits instant cross-border payments anywhere in the world from a user’s bank account. So far, seven global banks which handle a combined 33 million cross-border transactions annually are live with the service. With SWIFT Go, banks can offer simple payments experience for transactions typically made by small and medium-sized businesses (SMBs) to pay overseas suppliers and customers sending funds to friends and family internationally. The service includes pre-validation of data and enables financial institutions the ability to share processing times and costs with customers ahead of time. The system is expected to launch in November 2022 and already has support from Citi, Bank of New York Mellon, Deutsche Bank, BNP Paribas, Standard Chartered and Bank of China. The following global banks are now using SWIFT Go: BBVA, Bank of New York Mellon, DNB, MYBank, Sberbank, Société Générale and UniCredit. The new service will allow banks to compete effectively in one of the fastest-growing segments of the payments market, delivering a seamless experience for their customers.
MX, the financial data platform and leader in modern connectivity, announced an extension to its intelligent account verification solution, available through the MXconnect widget or MXapi, making it easier for customers everywhere to securely connect any depository account. Through a new partnership with Dwolla, MX has automated the micro-deposit verification experience for clients by removing the need to manage their own ACH and micro-deposit processes. This patented approach provides expanded coverage to financial institutions of all sizes, giving all customers secure access to their financial data—no matter where they bank. MX was already leading the industry with connectivity to instantly verify more than 90 percent of accounts within seconds. With the Dwolla partnership, MX increases coverage to the additional 10 percent of U.S. accounts via micro-deposits. The speed and success of these connections improve customer retention by reducing dropoff due to slow and failed connections. Developers can access MXconnect through the MXapi and begin testing in the sandbox environment within seconds. The updated functionality helps organizations deliver an intelligent connectivity experience within their products and reduces risk and customer drop-off.