The BIS and partners have completed the blueprint for phase three of Project Nexus, moving closer to seamless global instant payment connectivity. Phase four will see India’s UPI joining, significantly expanding the user base.
1 July 2024 – The Bank for International Settlements (BIS) and its partners have successfully completed the comprehensive blueprint for phase three of Project Nexus, marking a significant step towards connecting global instant payment systems. This blueprint paves the way for the next phase, where participants will work towards seamlessly integrating their systems.
Phase four will include Bank Negara Malaysia, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, Bank of Thailand, and domestic instant payment system (IPS) operators, joined by the Reserve Bank of India. This expansion introduces India’s Unified Payments Interface (UPI), the world’s largest IPS, into the project.
Bank Indonesia (BI), which participated in phase three, will continue its involvement as a special observer, allowing it to stay informed on the project’s progress.
Project Nexus aims to standardize the connection between domestic IPS, eliminating the need for custom connections for each new country. Instead, operators need only connect once to Nexus to reach all other countries in the network.
Governor Abdul Rasheed Ghaffour of Bank Negara Malaysia stated, “With the completion of phase three, we are closer to implementing a next-generation cross-border payment infrastructure. This comprehensive blueprint, developed through strong cooperation with ASEAN central banks and the BIS, will pave the way for greater global payment connectivity. We welcome India to the next phase of Project Nexus.”
BIS General Manager Agustín Carstens added, “This is the first BIS Innovation Hub project advancing towards a live phase with instant payment providers. Nexus has the potential to connect 1.7 billion people globally, enabling instant, easy, and cost-effective payments.”
The conclusions from phase three are detailed in a report published today, complemented by a scheme rulebook, technical implementation guides, and ISO 20022 message specifications available to central banks upon request.
To facilitate live implementation, partner central banks and IPS operators have agreed to establish the Nexus Scheme Organisation (NSO), which will manage the Nexus scheme and pursue the goal of achieving instant cross-border payments at scale. The NSO will be owned by the central banks and/or IPS in participating countries, depending on domestic structures.
While the BIS will not own or operate the NSO, it will continue to provide technical advisory support and facilitate cooperation among members, helping to realize Nexus’s global ambition.
Bank Negara Malaysia Governor Abdul Rasheed Ghaffour and BIS General Manager Agustín Carstens, along with other central bank leaders, attended the project launching ceremony for phase four of Project Nexus.
