With the support of 24 international banks, EBA Clearing, Swift and the Clearing House plan to initiate a pilot service by the end of this year for immediate cross-border payments. Participants will join the service in what the companies described as a “staged approach” in today’s announcement.
The goal is to improve cross-border payments by using faster domestic payment options. The pilot follows a proof of concept completed in October that “demonstrated the ability to synchronize settlement in one instant payment system with settlement in the other and to convert real-time messages between both systems,” the firms said. The service initially will support instant payments in U.S. dollars and euros with plans to expand to other currency channels and payment systems.
The companies said a full-service rollout is in the works for 2023. The key features of the service will be aligned with focus areas related to speed, access, cost and transparency, as outlined by the Committee on Payments and Market Infrastructures and Financial Stability Board for enhancing cross-border payments.