PARTICIPANTS
User Experience
An End-To-End Payment Through Nexus
IPS & Bank Functionality
Sanctions Screening
FX PROVIDERS & LIQUDITY PROVIDERS
NEXUS GATEWAY & SCHEME
ANNEX: API & Message Definitions
ANNEX: Recalls & Unhappy Flows
Sender selects destination country, defines the amount to be sent and is shown the FX rate
Nexus payments are initiated in the same way as a domestic fast payment, through the sender’s existing bank/PSP app or internet banking site. There is no dedicated Nexus app and users do not need to (and cannot) register with Nexus before they can make payments.
The Sender chooses the country to see the FX rate
- 1.The Sender will start by opening their Source Bank’s app and clicking (for example) “Make an international payment”.
- 2.The Sender’s selects the Destination Country that their payment is going to.
- 3.The Source Bank’s app calls Nexus’s Quote API to get the available FX rate for payments to that country. (See FX Providers update their rates for more details.)
- 4.The Source Bank’s app also calls Nexus’s Service Level Description API, which retrieves additional information that the Source Bank will need to set up the next few screens. (This is explained in detail in Payment Processes: Step 1).
- 5.The Sender enters the amount they wish to send (in the Source Currency) or the amount they wish for the Recipient to receive (in the Destination Currency).
- 6.The app calculates and displays the equivalent Source and Destination Amounts, the exchange rate and any fees. (It may also offer the Sender the option to cover any fees charged by the Destination Bank to the Recipient.)
Limits on the size of payments
Most domestic IPSs set a limit on the size of a single domestic payment. These limits can vary significantly from country to country, between as much as GBP 250,000 in the UK (equivalent to around USD 300,000) and as little as USD 120 equivalent in Turkey. In other countries, the IPS does not set a technical limit on the size of a payment, but individual banks may set limits on how much their customers can send.
In addition, each IPS (or their central bank or regulator) may specify a lower limit for cross-border payments than for domestic payments.
These size limits are one reason why IPSs are not used for payments between large corporates or financial institutions. However, they can be used for – for example – bill payments from individuals to large corporates, or even (in some countries) for salary payments from large corporations to individuals.
Countries and Currencies
Note: We assume that each country uses a single currency for banking, finance and accounting. This means that Nexus is fully compatible with the following scenarios:
- A country uses its own national currency exclusively (eg British pound sterling, Singapore dollars)
- A country uses one currency which is used by multiple other countries (eg the Euro)
- A country uses a foreign currency exclusively for all banking, finance and accounting (eg Ecuador’s use of the US dollar)
- A country uses its national currency for banking, finance and accounting, but the physical notes of another currency (typically the US dollar) are commonly used in face-to-face payments
The design could also accommodate the rarer cases where a country uses two currencies in banking, finance and account, such as those where the US dollar is widely used as a unit of account in business and banking alongside the domestic currency (eg Cambodia).
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