Standard Chartered has signed a memorandum of understanding (MoU) with digital payments platform Tazapay.
The MoU aims to deliver digital escrow services to buyers and sellers looking to trade globally on Proxtera, a business-to-business marketplace network. This marks the Bank’s first Escrow-as-a-Service (EaaS) offering, as well as the first banking partner that Tazapay is collaborating with following its partnership announcement with Proxtera in February 2021, according to the official press release.
Proxtera was established in 2020 to carry out a commercialisation of the Business sans Borders initiative with a vision to reduce friction in cross-border trade, especially for small and medium sized enterprises (SMEs).
Under the MoU, Standard Chartered will facilitate the opening of bank accounts required by Tazapay to receive and hold the escrow funds in both the buyers’ market and the escrow location and enable the flow of funds to the sellers once Tazapay validates the escrow conditions for the release of funds – for example, evidence of delivery or receipt of goods from the parties.
The pilot transaction for the MoU will take place between Singapore and India after obtaining appropriate regulatory clearances, with more corridors to be added in due course.
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