Corporate payments company Corpay has announced that its Cross-Border business can now support client FX conversions leveraging JP Morgan’s Kinexys Digital Payments blockchain.
Corpay focuses its efforts on supporting businesses and consumers in paying expenses in a simple and more controlled manner. The company’s suite of payment solutions assists its users in managing vehicle-related and travel expenses, as well as payables, such as paying vendors. By working with JP Morgan and integrating its solution, the company seeks to further serve the needs of its customers, providing them with products that meet their demands and preferences.
Optimising cross-border transactions for treasurers
Kinexys Digital Payments serves as a payment rail enabling near real-time value transfer leveraging commercial bank money, provided through Kinexys by JP Morgan, the company’s blockchain business unit. Since its inception, the Kinexys platform has processed in excess of USD 1.5 trillion in notional value, while payment transactions have expanded substantially year-over-year, as detailed by JP Morgan.
Through this solution, Corpay Cross-Border can extend its trading hours for its global client base and offer more efficient settlement compared to traditional fiat FX rails without a significant lockup of liquidity.
According to a recent use case provided by Corpay, a UK-based Corpay Cross-Border client received USD and booked an FX trade to convert and pay to their GBP account in the UK, after business hours. The trade settled within minutes, with the client obtaining GBP in their account through the UK Faster Payments network. Representatives from Corpay emphasised that the move brings benefits from both an internal Treasury liquidity use case and a client experience standpoint. The company’s clients can now access expanded trading hours, as well as fast settlement times. Additionally, JP Morgan’s technology can minimise settlement risk and times between counterparties.
Furthermore, JP Morgan plans to support Corpay and its clients in benefiting from more capabilities in cross-border and cross-currency transactions through blockchain technology. By facilitating access to a simplified FX market, the two organisations plan to enable new business flows and assist treasurers in optimising their business processes and improving working capital management.
