Wells Fargo and Derivative Path Partner on FX Payment Services

Derivative Path and Wells Fargo have partnered to help regional and community banks provide foreign exchange (FX) payment services.

The solution enabled by this collaboration works within bank customers’ digital experience, provides real-time FX rates across more than 120 currency pairs and streamlines the collection of settlement details at the point of payment creation, the companies said in a Monday (Jan. 27) press release.

“This collaboration with Wells Fargo marks a critical advancement in making global payments accessible and efficient for regional and community banks,” Derivative Path CEO and Co-founder Pradeep Bhatia said in the release. “Our technology is designed not only to meet the current and future needs of these banks, but also to integrate seamlessly into their digital platforms, enhancing the overall customer experience and extending their international capabilities.”

The partnership sees Wells Fargo’s FX Payment APIs integrated with Derivative Path’s platform that helps financial institutions manage interest rate, FX and commodity risks, according to the release.

For Wells Fargo, this offering marks another strategic technology partnership in which it’sworking to enhance the capabilities of regional and community banks, Dan Vogt, managing director, head of FX payment solutions sales and product strategy at Wells Fargo, said in the release.

“Working with Derivative Path allows our bank clients to leverage our robust APIs to bring FX payment solutions to their customers via digital channels where they want to transact,” Vogt said.

In another recent partnership in this space, Morgan Stanley said in December that it will offer its clients high-speed cross-border settlements through Wise Platform.

The investment bank tapped this solution from Wise, a global technology firm focused on money movement, to facilitate FX international settlement for its corporate and institutional clients.

In November, J.P. Morgan announced that it enhanced its blockchain platform, Kinexys, by integrating Kinexys Digital Payments with J.P. Morgan FX Services to enable on-chain FX settlement.

The bank said this integration initially supports U.S. dollars and euros, with plans to expand to other currencies, and allows clients to execute near real-time FX transactions and settlements via the J.P. Morgan global FX platform. This is expected to significantly reduce FX settlement risk and accelerate trade settlements.