BIS’ Project Nexus prototype links Singapore, Malaysia, and Eurosystem payment systems

This project is a multilateral network connecting multiple domestic instant payment systems.

Online payments can now be transacted between Singapore, Malaysia, and the Eurosystem, said the BIS Innovation Hub Singapore Centre. All thanks to the success of Project Nexus by BIS.

Test payments were conducted through Eurosystem’s TARGET Instant Payment Settlement, Malaysia’s Real-time Retail Payments Platform, and Singapore’s Fast and Secure Transfers payment system.

The Nexus project is a collaboration amongst BIS’ partners such as the Bank of Italy, the Central Bank of Malaysia (BNM), and the Monetary Authority of Singapore (MAS).

Project Nexus envisions improving the cost, speed, accessibility and transparency of international payments amongst G20 countries.

In line with the November 2022 Memorandum of Understanding on Cooperation in Regional Payment Connectivity, the next phase of the project targets to expand the IPS to Bank Indonesia (BI), BNM, Bangko Sentral ng Pilipinas, MAS, and the Bank of Thailand.

“The next phase of work by the central banks of Singapore, Indonesia, Malaysia, Philippines, and Thailand will be crucial in laying the foundations for future implementation at scale. ASEAN’s progress in regional payments connectivity puts us in good stead to realise Nexus’ vision for a global instant payments network,” MAS Chief FinTech Officer Sopnendu Mohanty said.

The MAS said that BIS and the central banks are hopeful the project will go beyond the Southeast Asia region. To ensure international expansion, all parties aim to establish a Global Advisory Panel of central banks and payment system operators.