EBA Clearing said that this week has seen two German banking groups, which will use its STEP2 pan-European platform for mass payments for a major part of their future single euro payments area (SEPA) payments, migrate the first transactions to the processing mode specifically designed for handling very high volumes.
The banks exchanged SEPA payments via STEP2 that were, among other things, pre-sorted by the receiving bank. The batch processing mode used for this allows a fast and efficient clearing of large payment volumes.
Over the next three months, seven major players in the German payments market will migrate their bilateral mass payments to this processing mode on the STEP2 platform – replace the direct bilateral exchange of these mass payments currently taking place between the individual financial institutions (FIs) (aka ‘Garagenclearing’).
“The exchange of SEPA credit transfers [SCTs] in the batch processing mode between two STEP2 participants from Germany marks the beginning of a large-scale migration of domestic payments to EBA Clearing’s pan-European platform by German banks,” said Gilbert Lichter, chief executive officer (CEO), EBA Clearing.
“This successful step shows that our German participants are ready for the migration of national credit transfer and direct debit volumes to the SEPA formats and for the settlement of these payments via a new clearing channel. After long and intense preparations, we are looking forward to tackling this last phase of the SEPA migration in co-operation with the banks.”
EBA Clearing, founded in 1998 as a provider of pan-European payment infrastructure solutions, is owned by 62 of the major banks operating in Europe.
SWIFT has announced that it has successfully completed the first phase of the global payments innovation (GPI) initiative pilot, clearing the way for the go-live of the service in early 2017.
Despite faster payment technologies, business-to-business payments by paper cheque show no sign of decline from three years ago.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A paper from the independent researcher analyses whether Bitcoin will crowd out fiat currencies in the global community.