In yet another piece in the current outpouring of x-border payments pieces, the author (a senior at an x-border payments consulting firm), provides some content and opinions around how things are evolving.
Just in this past week we have already commented on several similarly focused postings, including the one where even the Federal Reserve chair delivered a speech with x-border as one focal point.
‘Cross-border payments are more than moving money from one country to another. It’s also about making payments safe, efficient, and compliant with regulations, and the data about the payment that must be transferred as well. For this to take place, a number of checks and processes need to be ensured before the payment is made, while it is moving through the financial system, or even after the payment is received. This is why significant improvements have been made over the years to cross-border payments.’
As the title states, the main point is ISO 20022 adoption in conjunction with APIs to access data and resources that are applicable The author in this case provides a bit more detail than one usually sees in these pieces, including schematic diagram of how APIs can be utilized for an optimal experience. There is a fair number of examples as well, so worth the 5 minutes to read through.
‘Aware of the benefits, new payment providers are using APIs and ISO 20022 to offer their services to banks and established financial institutions, giving them the opportunity to grow faster rather than signing up end-users directly. APIs also allow payment providers to plug into different services to manage the various steps of cross-border payment, such as sanctions screening, money laundering checks, account validation and payment routing.‘
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group