Cross-Border Payments
CROSS-BORDER
Moneyport’s combined business model provides an advanced real-time settlement and liquidity management platform, integrating a short- term credit line facility designed to meet the urgent liquidity needs of financial institutions, payment service providers (PSPs), and non-bank financial institutions (NBFIs). This solution utilises the stablecoin and other future stablecoins issued by Moneyport to streamline cross-border transactions while offering a rapid, flexible credit solution.
Moneyport’s core service is a real-time cross- border settlement network that ensures final settlement occurs immediately, using Moneyport stablecoin for UK transactions and future stablecoins (e.g., USD, EUR) for global payments.
Source: Lammer, T., T. Rice (2022): The G20 cross-border payments programme: A global effort. Journal of Payments Strategy & Systems, Vol. 16, No. 3, pp. 1–12.
Source: Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS).
Instant Settlement
Transactions between network participants are settled instantaneously. Participants can bypass the traditional reliance on nostro/vostro accounts, allowing direct settlement without delays.
Scalability
The platform will be designed to handle high transaction volumes with no delays, making it particularly suitable for institutions that need reliable and fast cross-border payments.
- + Facilitating the sharing of payment infrastructure: This reduces costs for financial institutions, allowing them to focus on delivering better products and services without the burden of heavy infrastructure investment. It also lowers costs for end-users, increases access, and promotes competition and innovation in the market.
- + Expanding the market for cross-border payments: By enhancing interoperability across financial institutions, Moneyport increases the reach of digital payment services, fostering greater inclusion and participation in the global economy.
- + Increasing digital liquidity: Moneyport’s platform encourages the continuous flow of funds within the financial system by making cross-border transactions faster and more convenient. This, in turn, reduces the reliance on cash-based transactions and promotes the growth of digital payments.
Inefficiencies in Settlement Speed Solved
Traditional cross-border payment systems rely heavily on correspondent banking networks, which introduce significant delays. Settlement often takes multiple days, resulting in uncertainty for institutions and their clients.
The reliance on multiple intermediaries, including nostro/vostro accounts, creates a multi-layered process that introduces unnecessary friction and delays in completing transactions. This delay not only slows down business operations but also ties up liquidity for financial institutions.
Moneyport’s real-time settlement system allows institutions to settle transactions instantly, without the need for intermediaries.
This eliminates the inefficiencies of the traditional system and ensures finality of settlement in seconds, drastically improving the speed of cross-border transactions.