EBA, SWIFT, TCH, Collaborate To Make Cross-Border Payments Faster

EBA CLEARING, SWIFT and The Clearing House (TCH) are collaborating on a new initiative, Immediate Cross-Border Payments (IXB), to speed up cross-border money transfers and make the process easier.

IXB has the support of 11 banks that contributed to the design, with seven participating in a proof of concept that demonstrated the successful exchange of payments and receipt messages. 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 both systems,” according to a press release emailed to PYMNTS on Monday (Oct. 11).

The concept can be developed for more currencies and for more “liquidity-efficient high-value” payments. Bank of America, BBVA Group, Citi, HSBC, Intesa Sanpaolo Bank, J.P. Morgan and PNC Bank participated in the initial proof of concept.

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“By leveraging the RTP network in the United States and RT1 in Europe, along with ISO 200022 message formats, IXB demonstrates that a faster cross-border payments 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 utilizing existing faster payments systems, financial institutions can leverage existing processes, protocols and technology to make the user experience seamless across payment types, whether domestic or cross-border,” Waterhouse added.

The initiative was created to meet the rising demands and expectations of individuals and corporates who expect cross-border transactions to have the ease of domestic real-time payments. The IXB proof of concept shows that accomplishing that is possible and could work with financial institutions of all sizes and without the need for a separate network.

“IXB demonstrates how the current ecosystem of cross-border payments may be enhanced and made suitable for new high-volume 24/7 business,” said Erwin Kulk, head of service development and management at EBA CLEARING. “In combination with an international request to pay, its potential applications would be limitless.”

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Using existing infrastructure, technology and standards, IXB worldwide meets expectations for an easy, transparent way to send cross-border payments. IXB also uses ISO 20022 message standards, which are “fully aligned with the focus areas related to speed, access, cost and transparency, outlined by the Committee on Payments and Market Infrastructures (CPMI) and Financial Stability Board (FSB) for enhancing cross-border payments,” per the release.

“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 building blocks in the CPMI’s global roadmap on enhancing cross-border payments,” said David Watson, chief strategy officer for SWIFT.