Glossary: Cross-border Payments
The cross-border payment industry is filled with participants — banks, governing bodies, rulebooks, technologies, platforms, and more — each with their own abbreviations and acronyms. Here is an overview of the jargon you need to know:
CPMI — The Committee on Payments and Market Infrastructures
An international organisation that sets standards for the safety and efficiency of payments, clearing and settlements.
ECB — European Central Bank
The central bank of the 19 European Union countries which use the euro.
EPC — European Payments Council
An international non-profit association supporting European payment service providers. They manage the SEPA payment schemes that underpin most of the Euro credit transfers and direct debits in Europe.
G20 Initiative on Enhancing Cross-border Payments
A focus of the G20 during the 2020 Saudi Arabian presidency.
NPC — Nordic Payments Council
A Nordic non-profit member association which facilitates payments and harmonisation within the Nordic countries by supporting payment service providers and managing Nordic payment schemes. The NPC develops and maintains payment schemes based on the SEPA Payment Schemes to facilitate payments within the Nordics, in Nordic currencies and harmonising the rules for payments in Euro.
NPC Credit Transfer Scheme and Instant Credit Transfer Scheme Rulebooks
A set of rules, practices and standards issued by the NPC to achieve interoperability for the provision and operation of credit transfers and instant credit transfers agreed at the interbank level for the Nordic currencies.
P27 (Project 27)
A joint initiative by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank to build a real-time cross-border payment system in the Nordics, with batch payments for SEK and DKK scheduled to be migrated first.
Retail Payments Strategy
An initiative by the European Commission from September, 2020 to develop the European payments market with a focus on instant payments.
A new settlement service by Sweden’s Riksbank built upon the TIPS payment platform to enable instant payments between banks with a scheduled launch in May 2022.
SCT (SEPA Credit Transfer) and (SCT Inst) SEPA Instant Credit Transfer Rulebooks
A set of rules, practices and standards issued by the EPC to achieve interoperability for the provision and operation of credit transfers and instant credit transfers agreed at the interbank level for the euro transfers.
SWIFT — Society for Worldwide Interbank Financial Telecommunication
A worldwide network that enables financial institutions to send and receive information about financial transactions in a secure, standardised and reliable environment.
SWIFT gpi — Global Payments Innovation
A new standard by SWIFT that aims to improve international payments by making them faster and more transparent.
Third party digital payment platforms
A type of non-bank, digital instant payment solution that provides an infrastructure to connect buyers and sellers and facilitate transactions. Notable examples include:
● Facebook Pay
● Google Pay
● Apple Pay
● Samsung Pay
● Amazon Pay
TIPS — TARGET Instant Payment Settlement
A market infrastructure service by the Eurosystem that enables payment service providers to offer fund transfers in real time.