The aim of the project is to form the foundation of a global network that performs a similar service as SWIFT inter-bank messaging but with near-instant settlement times. Among other participants we include: Standard Chartered, UniCredit, Westpac Banking Corporation and Canadian bank CIBC. First phase of the program is creating a standardized agreement that establishes the terms and conditions which a bank must agree to in order to join, detailing how transactions will be processed and what kinds of information will be exchanged. Then a “functional standards document” should be created that would enable various banks to interact across currencies and jurisdictions.
Global Payments Steering Group’s main mission is the creation and maintenance of a payments transaction rulebook and formalized standards that they intend to then take to international standards-making bodies.
A good example of this type of payment standardization is the cross-border payments solution like the one Santander announced in May 2016, in which bank employees could issue payments between banks using Ripples network.
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