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Financial coalition to trial faster cross-border payments between Europe and the US

Financial coalition to trial faster cross-border payments between Europe and the US

EBA Clearing, Swift and The Clearing House (TCH) are to run a pilot service for immediate cross-border payments (IXB) with the support of banks from both sides of the Atlantic.

The pilot, designed with the contribution of 24 financial institutions, is scheduled to begin by the end of this year. The service promises to improve cross-border payments by utilising the fastest domestic payment options.

The IXB project follows proof-of-concept trials conducted in October with the support of seven financial institutions. The PoC 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 the ISO 20022 message standards, Swift Go and the instant payment systems of EBA Clearing and TCH, the service initially will support instant payments in the US dollar and euro currency corridor.

Russ Waterhouse, EVP 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 adds: “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 RTP participants of all sizes.”

It is envisaged that the IXB pilot will be followed by a full service offering in 2023.

Jean-François Mazure, head of cash clearing services at Societe Generale, says: “From a user experience perspective, we believe that the IXB initiative represents a significant step towards a faster trans-Atlantic payment corridor, removing frictions and bringing value to all our customers, both individuals and corporates.”

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