INTERNATIONAL: EBA Clearing, SWIFT and Clearing House to Deliver Pilot Service for Immediate Cross-Border Payments

Wednesday May 4 2022

On 28^th April 2022, the European Banking Authority (EBA) Clearing, Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT) and the Clearing House (TCH) announced that they plan to launch a pilot service for immediate cross-border (IXB) payments with the support of banks from both sides of the Atlantic. The pilot service is scheduled to begin by the end of this year with several participants joining the service in a phased approach. It is being designed with the contribution of 24 financial institutions, including those that are preparing to join the pilot.

The development of this pilot marks another important step in the IXB initiative launched by the three private-sector, member-owned companies to improve cross-border payments by utilising the fastest domestic payment options. It follows a proof of concept completed in October 2021, with the contribution of seven financial institutions.

Since October 2021, the group of supporting financial institutions has continued to grow and has formed an IXB Sounding Board to provide input on the development of this cross-border payment service leveraging existing real-time infrastructure, technology and standards. Based on state-of-the-art building blocks, such as 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 U.S. dollar and euro currency corridor. It is developed with a view to being extended to other currency channels and payment systems.

It is envisaged that the IXB pilot service will be followed by a full service offering in 2023. 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 (CPMI) and Financial Stability Board (FSB) for enhancing cross-border payments.

By providing a model that can be replicated across other currency corridors and payment systems, the IXB initiative is expected to provide even greater opportunities for financial institutions and their customers around the globe.

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