Nexus: enabling instant cross-border payments
This 2023 report has been superseded and is now out of date. Please refer to the main Nexus page for the latest updates and reports.
Nexus is a model for connecting multiple national payment systems into a cross-border network that could enable international payments to happen in seconds.
In over 60 countries today domestic payments reach their destination in seconds at near-zero cost to the sender or recipient. This is thanks to the growing availability of instant payment systems (IPSs).
Cross-border payments could be significantly improved by linking up domestic instant payment systems (IPSs)1 in multiple countries. Nexus provides a blueprint for doing this.
In 2022, the BIS IH Singapore Centre built a working prototype of Nexus and used it to connect the test systems of three established IPSs:
- The Eurozone's TARGET Instant Payment Settlement (TIPS) system, operated by Bank of Italy on behalf of the Eurosystem and overseen by the European Central Bank.
- Malaysia's Real-time Retail Payments Platform (RPP), operated by Payments Network Malaysia (PayNet) and overseen by Central Bank of Malaysia.
- Singapore's Fast and Secure Transfers (FAST) payment system, operated by Banking Computer Services (BCS) and overseen by the Monetary Authority of Singapore.
The Nexus proof of concept demonstrated that connecting IPSs multilaterally is technically feasible and can have significant potential benefits for individuals and businesses across the world.
The overview report is accompanied by detailed technical documentation, which includes guides for each type of participant in Nexus. The Nexus blueprint is comprehensive but not final and feedback is welcome2.
In the next phase of this work, BISIH Singapore Centre will collaborate with the central banks and payment system operators of Indonesia, Malaysia, the Philippines, Singapore and Thailand as they work towards connecting their domestic payment systems, using the Nexus blueprint as the foundation.
1 Often known as "fast" or "real time" payment systems.
2 The Nexus team can be contacted at singapore.centre@bisih.org