More than 60 countries currently have instant payment systems that allow for quick money transfers within seconds. However, sending money internationally remains slow and costly. The solution lies in connecting these domestic payment systems globally, which would enhance the speed, affordability, and transparency of cross-border payments.
Nexus serves as a standardized platform to facilitate the connection between these systems. Instead of payment system operators having to build custom connections for each new country they connect to, they can make a single connection to the Nexus platform. This single connection enables fast payment systems to reach all other countries within the network. By leveraging Nexus, the growth of instant cross-border payments can be significantly accelerated.
In 2022, a working prototype of Nexus was developed and used to connect the test systems of three established IPSs: the Eurozone’s TARGET Instant Payment Settlement (TIPS) system, Malaysia’s Real-time Retail Payments Platform (RPP), and Singapore’s Fast and Secure Transfers (FAST) payment system. The Nexus project’s overview report provides insights into Nexus and shares the lessons learned from this proof-of-concept.
To aid payment system operators, banks, payment service providers, and FX providers in understanding the process of connecting to Nexus, a technical guide has been provided. This documentation outlines the business models for each participant as well as the processes, messages, and APIs utilized.
In the next phase of work, the BISIH Singapore Centre is collaborating with the central banks of Indonesia, Malaysia, the Philippines, Singapore, and Thailand to connect their domestic payment systems. The goal is to make cross-border payments faster and more affordable.
The webinar extract from April 5th, 2023, explains the problem that Nexus solves, highlights the proof of concept, and shares valuable lessons learned for the payments industry.