Santander, Iberpay introduce global instant transfers

Being started and completed in different currency areas, the international instant transfers were processed through both Santander and Iberpay’s payment technology platforms based on the EPC’s One-Leg Out (OCT Inst) scheme. By enabling payment service providers (PSPs) in the SEPA area to process instant international transfers from and to regions located outside of the Euro area, the OCT Inst scheme focuses on mitigating differences between time zones globally. In addition, the scheme utilises existing instant payment standards and systems in Europe based on the EPC’s SCT Inst scheme.

Developed to improve and simplify international payments, the OCT Inst scheme works towards enhancing the speed, availability, cost, accessibility, and transparency, following the strategy and roadmap set by the G20 and other global organisations, including the European Commission, the World Bank, or the International Monetary Fund. Moreover, the scheme aligns with the objectives for enhancing these international payments created by the Financial Stability Forum (FSB) for 2027.

Iberpay’s service was designed based on similar technology to instant credit transfers in euros (SCT Inst scheme), which currently correspond to nearly 53% of all credit transfers processed in Spain. By implementing the new operational procedure, the beginning or end of international payments within the Euro area between the intermediary bank and the initiation order, or the financial beneficiary bank, are set to become substantially accelerated. Additionally, the solution aims to deliver more efficient international payment processing, increased information transparency, and end-to-end payment traceability.

Furthermore, representatives from Iberpay underlined that implementing the OCT Inst scheme supports the advancement of Europe’s payment landscape while solidifying the company’s strategic position as a payment system. Also, the current announcement advances Iberpay’s commitment to improve international payments between different currencies in terms of processing speed, operations, information transparency, accessibility, and cost reduction. The move is set to enable the company’s banks to provide new services, enhance the customer experience, and strengthen their competitiveness in the global payment industry.

According to Santader’s officials, the bank is committed to developing and taking the required steps to evolve international instant payments, adapting its offerings to the needs of all its clients. Moreover, the Spanish banking community agreed to the full adoption of the service starting in October 2024, with the rest of the banks preparing to connect to Iberpay’s service over the upcoming months.