Real-time payments are becoming the new norm in global finance these days. One thing holding back the adoption of these solutions is their lack of interoperability. Eacha, a financial services provider, launched their framework to alleviate all of those problems. Everyone in the world can start interoperable instant payment service in Euros moving forward.
Eacha Pushes European Real-time Payment Adoption
Even though the Eurozone allows for convenient payments in the same currency, there are still payment delays associated with every single transaction. Bank transfers are usually completed within 24 business hours, although that is not always the case. Instant transfers of value are entirely possible, but interoperability is very difficult to enforce right now.
This is where Eacha comes into the picture, as they have published the Instant Payments Interoperability Framework. This building block enables all participants in financial transactions to offer interoperable instant payment services denominated in Euros. Mainly central banks, clearing and settlement providers, and other financial institutions will benefit from this solution.
The project started out in 2015, once the concept had gained approval from the ECB. Having such a supporting partner immediately validates this interoperable real-time payments framework, which can help strengthen the Eurozone’s economy as a whole. Furthermore, the entire framework is compliant with all regulatory guidelines within the EU.
Financial experts may recall that some of the largest European banks have rolled out their Instant Payments projects in the past year. Interestingly enough, this new framework immediately attracted interest to its interoperability with other communities. The ECB themselves announced that they would support this new level of interoperability form November 2017, onwards.
The Eurozone needs some positive financial solutions, as the economy continues to struggle. Enabling instant payments in Euros can help improve the situation and cause enterprises and consumers to spend more money again. Moreover, this framework can help attract foreign investment, assuming that those companies have access to European payment accounts.
Don’t be mistaken in thinking that this new payment protocol is a competitor to the existing SEPA system. Eacha has been working on creating an interoperability framework for SEPA schemes as far back as 2008. All of the practical knowledge gained during that process has been put to great use when they started building the new framework. However, both systems are designed to complete one another, rather that one-up each other.
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