Spanish Banking Community Joins Instant Cross-Border Payments Plan

Spain has become Europe’s first banking market fully connected to the European Payments Council’s One-Leg Out instant payments plan.

The country’s banking industry achieved that milestone earlier this month, Iberpay said in a news release Monday (Nov. 18).

As part of the EPC’s One-Leg Out (OCT Inst) program, banks can tap into Iberpay’s service, instant payment technology, standards and processing capabilities allow for instant cross-currency payments.

OCT Inst lets payment service providers in the Single Euro Payments Area (SEPA) process instant international transfers to and from countries outside the eurozone in just a few seconds, 24 hours per day, seven days a week.

“By leveraging established instant payment standards and systems across Europe, OCT Inst scheme aims to enhance the user’s experience, facilitate new use payment cases and support the development of innovative payment services that compete with emerging players in the international payments sector,” the release said.

“This scheme also aligns with the G20’s roadmap and strategic goals to improve international payments by increasing speed, reducing costs and enhancing transparency and accessibility.”

Iberpay was the first European certified payment system to join OCT Inst, while Santander was the first European bank. Together, the two processed the first international instant transfers in the scheme in May.

In other cross-border payment news, PYMNTS explored the difficulties in navigating these payments in a conversation with Dean M. Leavitt, founder and CEO of Boost Payment Solutions.

“Many people are unaware of more viable, cost-effective and efficient methods for making cross-border payments,” Leavitt told PYMNTS CEO Karen Webster.

Sophisticated CFOs and finance leaders, especially in medium-sized to large companies, are increasingly prioritizing payment optimization, trying to leverage payments as part of broader working capital strategies, no matter their industry.

“There are many ways to move money internationally, but few incorporate a credit component,” Leavitt said.

While blockchain technology has shown promise in dealing with some cross-border inefficiencies, its main function is to facilitate instantaneous value transfer between parties, without the additional benefit of credit terms.

Commercial cards have emerged as a critical tool in this arena, acting as a “working capital weapon,” as Leavitt put it. These cards let businesses extend payment terms by increasing their days payable outstanding, offering more flexibility to buyers.