The service was introduced at the request of users to support cross-border payments involving one euro leg within the Single Euro Payments Area (SEPA) and another leg outside of it. This addition enables payment service providers (PSPs) to process transactions under the European Payments Council's (EPC) One-Leg Out Instant Credit Transfer (OCT Inst) Scheme.
RT1, a pan-European instant payment system, now provides settlement infrastructure for international transactions meeting the requirements of the OCT Inst Scheme. These requirements include better transparency and traceability, as outlined by the G20 and the Financial Stability Board to improve cross-border payment processes.
The RT1 OCT Inst Service leverages the established infrastructure of RT1 for handling international payments. It enables PSPs across Europe to manage incoming and outgoing instant credit transfers while complying with EPC standards.
In the company press release, representatives from EBA CLEARING highlighted the system's operational reliability and its ability to process millions of payments daily. They noted that RT1 has been optimised to meet industry standards and accommodate both SEPA and international instant payment volumes.
Officials from from J.P. Morgan Payments emphasised that the OCT Inst Scheme holds potential to transform cross-border payments by enabling SEPA PSPs to use an established pan-European system for international transfers. They indicated that the scheme's introduction in RT1 represents a significant step in expanding its applicability to global payment corridors.
Commerzbank representatives chimed in and described the integration of OCT Inst and SCT Inst as a development that connects instant payment systems across regions, facilitating seamless, round-the-clock transactions. They view this as a critical step in making instant payments a standard for cross-border transfers.
RT1, operated by EBA CLEARING since 2017, processes over 3 million instant payments daily and has handled peaks of more than 5 million transactions. Payments settled through RT1 achieve real-time finality, typically within one second. The system supports all PSPs adhering to the EPC’s SEPA Instant Credit Transfer (SCT Inst) Scheme, offering various access options to suit different needs.
EBA CLEARING, founded in 1998, is a European payment infrastructure provider. Its services include EURO1, STEP1, STEP2, and RT1, with the latter being the first pan-European real-time payment system. The company is jointly owned by 48 major banks operating across Europe and operates under a country-neutral governance framework.
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