The Bangko Sentral ng Pilipinas (BSP) and four other central banks in the ASEAN region have partnered to connect their domestic instant payment systems (IPS) through the Bank for International Settlements’ (BIS) Nexus Project.
The second phase of the project will allow first-mover countries in the ASEAN to utilize the potential of multilateral connectivity of fast payment systems.
BSP Governor Felipe M. Medalla said the enhancement of cross-border real-time retail payments would facilitate financial integration within the region.
The Nexus, which is a prototype developed by the BIS Innovation Hub Singapore Centre, connects payment system operators with the Eurosystem’s TARGET Instant Payment Settlement, Malaysia’s Real-time Retail Payments Platform, and Singapore’s Fast and Secure Transfers.
The Nexus’ standardized and multilateral network will link different IPS for wider connectivity and multilateral cross-border network, according to a joint statement by the BSP, BIS, and the central banks in the ASEAN trade bloc.