While sending and receiving domestic payments relatively quickly has been possible for quite some time, financial institutions have always struggled to achieve true cross-border payments with the same speed. Partior may have solved this problem through a trusted blockchain-based clearing and settlement platform.
A joint venture between investment bank JP Morgan, Singaporean holding company Temasek, and Singapore-based financial corporation DBS, Partior is today’s technology platform of choice. It changes the way settlements, payments to suppliers, and all things related to accounts payable and accounts receivable are processed by providing financial institutions with a global platform that is fast, safe, and efficient.
The Challenge of Cross-Border Payments
Currently, cross-border payments are possible through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and correspondent banks. The default communication network alone does not provide reliable domestic payments from one country to another. That is why financial institutions depend on intermediaries. They need them to complete a customer payment, handle accounts receivable and accounts payable activity, and settle payments between one another.
Constraints relating to technology, infrastructure, and international banking regulations impact processing time and transfer cost. This is because more than one correspondent bank is usually involved in the movement of funds.
Today, Partior – which means “distribute” and “share” in Latin – stands as a non-bank provider that facilitates seamless and fast cross-border transactions. The new platform helps address the many challenges that come with moving funds internationally.
Partior is a common, open platform that provides streamlined solutions for making cross-border payments, foreign exchange settlements, finance trades, and everything that has to do with accounts receivable and accounts payable transactions. Built with blockchain technology, it enables smooth, secure, and real-time processing of transactions. Transfers are easier to complete, take little time to process, and have minimal delays with coordination.
Partior aims to provide a cost-effective and straightforward means for settling transactions as global payments volume is expected to rise next year. In less than two minutes, end-to-end settlements can be completed, whereas it would normally take days to process such transactions using the usual method. In this environment, Partior’s solution helps ease liquidity, reduce security risks, and minimize costs.
CEO Jason Thompson explains that Partior’s next-gen tech supports an “increasingly connected world.” By investing its resources, technology, and partnerships into one platform, those in the financial services industry get to enjoy high-speed and uncomplicated transfers.
Partior is not alone
Not to be left behind, EBA Clearing, SWIFT, and The Clearing House (TCH) recently announced a new initiative, Immediate Cross-Border Payments (IXB), designed to make cross-border payments as fast and seamless as domestic payments. According to the IXB initiative’s press release, the collaboration between the three organizations has resulted in a proof of concept that sought to “synchronize settlement in one instant payment system with settlement in the other and convert real-time messages between both systems.”
Only time can tell whether the Partior or IXB solution will become the de facto method for cross-border payments or whether their recent progress paves the way for more solution providers in the next year or two. Whatever occurs, a faster and more streamlined approach for cross-border payments was long overdue.
Ernie Martin is Founder and Managing Director of Receivable Savvy. He brings over 25 years of experience in financial supply chain management, marketing and communications and draws upon his extensive experience to share knowledge and best practices with AR professionals. He previously chaired the Vendor Forum of the Federal Reserve Bank of Minneapolis and his resume includes time at several well-known brands and companies such as Tungsten Network, Delta Airlines, CIGNA Healthcare and Georgia Pacific as well as a number of years as an independent consultant.