A New Era for Cross-Border Payments: India and Singapore Lead the Way
Last week, India and Singapore launched a real-time link to facilitate easier cross-border money transfers between the two countries. Now, a mobile device is the sole requirement to complete a money transfer between India and Singapore, the former being the world's biggest recipient of remittances. This accomplishment demonstrates the hard work being put into making instant cross border payments accessible to more corridors. Since we live in a globalized ecosystem, the need and benefits of instant cross border payments and thus the requirement for cross-network interoperability is more relevant than ever before.
In the current Payments landscape, each country has its own payments infrastructure, policies, and regulatory bodies which brings about nuanced challenges when it comes to real time cross-border money transfers. The goals of real time payments include faster, cheaper, more transparent cross-border payment services, while maintaining security and promoting economic growth, international trade, global development and financial inclusion. The Immediate Cross-Border Payments (IXB) pilot service (developed by The Clearing House in the U.S. EBA Clearing in Europe and SWIFT), and the Financial Stability Board’s published roadmap to enhance cross-border payments are examples of direct responses to setting frameworks to create the infrastructure that will allow for instant cross-border payments. Standardization approaches such as #ISO20022 deserve to be highlighted as well since it serves to create a common language to facilitate cross-border payments.
Though we have many more knots to untie, India and Singapore, as well as the ongoing efforts of key stakeholders in the Payments space worldwide, showcase our continued drive as a collective to foster the collaboration needed both at market infrastructure and individual level to make instant cross-border payments accessible everywhere. #payments #instantpayments #remittances #jpmorgan
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