BIS Innovation Hub Singapore Centre has used the Nexus prototype to connect the test versions of three established instant payment systems (IPSs), from the Bank of Italy, Central Bank of Malaysia and Monetary Authority of Singapore.
Nexus connects domestic IPSs on a multilateral network, with the goal of improving cost, speed, accessibility and transparency around cross-border payments. IPSs are not homogenised, with differences between them accommodated by the system.
The test programme used Eurosystem’s TARGET Instant Payment Settlement, Malaysia’s Real-time Retail Payments Platform and Singapore’s Fast and Secure Transactions payment systems, with payments initiated by the mobile phone or company registration number of recipients.
The next phase of the Nexus project will explore the real-world potential of the system, BIS says. Initially, this will include Bank Indonesia, BNM, Bangko Sentral ng Pilipinas, NAS and the Bank of Thailand, who will open the system up to approximately 500 million people.
The project plans to establish a Global Advisory Panel of banks and payment system operators in order to implement Nexus globally, BIS states.
Cecilia Skingsley, head of the BIS Innovation Hub, says: “I am thrilled at our success in connecting three national payment systems and the potential this indicates for Nexus. It paves the way for further development, and we look forward to collaborating with our partner central banks on the next phase of the project.”
