Bank of America to Launch Cross-Border Real-Time Payments Service
Bank of America plans to launch a cross-border real-time payments service next quarter to provide businesses and financial institutions with more efficient settlement options. The service will support real-time payment tracking and connect to multiple real-time payment networks worldwide, making it particularly relevant to cross-border settlements for e-commerce platform suppliers by shortening funds-transfer times and reducing operational complexity.
What are the key facts?
- 1Supports the Swift and CashPro platforms
- 2Covers markets including Mexico, the United Kingdom and India
- 3Supports real-time settlement for e-commerce platform suppliers
What happened?
Bank of America announced that it will launch a new cross-border real-time payments service next quarter, primarily for corporate, commercial and financial institution customers. Customers will be able to send and receive funds instantly through the Swift or CashPro platforms. Use cases include e-commerce platform supplier settlements, international remittances and gig-worker payments. The system is connected to multiple real-time payment networks, including SPEI in Mexico, Faster Payments Service in the United Kingdom and UPI in India. It also provides real-time tracking and aims to deliver funds within seconds or minutes without additional correspondent-bank fees.
What does this mean for cross-border sellers?
More efficient cross-border payments could significantly ease sellers’ cash-flow pressure, particularly for frequent, low-value international transactions. Sellers should monitor support for settlements on major e-commerce platforms to improve cash-management efficiency.