Iberpay ready to connect Spanish banks to EBA Clearing’s RT1 when SCT Inst starts
14 November 2017
Iberpay is ready to act as one of the first technical service providers connecting to RT1, EBA Clearing’s platform for cross-border euro real-time payments (RTP) ahead of the SCT Inst scheme ‘go live’ on 21 November 2017.
The imminent single euro payments area (SEPA) instant credit transfer (SCT Inst) scheme launch in Europe provides users with the possibility of instant payments across the 34 SEPA Countries in Europe from France to Spain, Poland to Italy and so on.
By connecting with RT1 the Spanish banks’ infrastructure provider will offer the desired pan-European reachability, while also retaining volume and services for their own refreshed account clearing house (ACH) and CICLOM platform.
The platforms will adhere to the European Payments Council (EPC) scheme rulebook that is intended to encourage multiple clearing and settlement mechanisms (CSMs). RT1 and CICLOM will process euro instant payments in accordance with the scheme and its requirements such as the use of ISO 20022 global messaging standards, less than 10 second settlement, irrevocability and so on. RT1 connectivity will add the desired cross-border reachability and access to central bank money liquidity.
Participants from nine countries have committed to joining RT1 already in 2017, extending SCT Inst reach to over 325 payment service providers (PSPs), but Iberpay is the first to officially announce that it is ready to connect ahead of the 21 November voluntary go live. The lack of a mandatory element to the scheme is likely to mean slow initial take-up.
Commenting on the readiness announcement, Javier Santamaría, Chairman of Iberpay, said it was strongly committed to playing a leading role in the future of payments for the benefit of its 160 plus participants. “Spanish banks will be able to exchange all their instant credit transfers through a single window,” he said, “which will process them in the best way across Europe, in a seamless manner and reusing the efficiencies of Iberpay’s platform.”
Iberpay’s main purpose is to manage the Spanish interbank payments infrastructure (SNCE) and Cash Logistics System (SDA). It processes almost two billion transactions a year (25 million on peak days), representing a total value of over €2 trillion.
EBA Clearing is a provider of pan-European payment infrastructure solutions such as the high value EURO1 platform and lower value STEP2 platform. It is owned by 51 major banks operating in Europe. The latter platform processes credit transfers and direct debits in euro and can reach more than 4,800 financial institutions (FIs) in all SEPA countries – if they choose to connect. For the imminent RT1 platform, which adds instant payment functionality, its technology partner is SIA.