2 PAYMENT METHOD PROFILES: PAY BY BANK
Supply Chain Structure For multinational projects such as Nexus coordinated by the Bank of International Settlements, there are unique dynamics between actors. Cross-border instant payments differ from traditional instant payment rails due to the use of gateways between banking systems. Nexus Supply Chain
Actors in Nexus
Source PSP
Source IPS
Source Gateway
Destination Gateway
Destination IPS
Destination PSP
Sender
Recipient
€100
+S$135
4
9
5
12
2
6
1
10
7
-€98.50
+S$135.67
3
8
+€98.50
-S$135.60
11
Settlement Access Provider
FX Provider
Settlement Access Provider
Figure 2.10 536
Nexus Actors and Fee Models Multiple actors in Nexus Transaction Breakdown of Nexus Fee Model FX Provider (FXP):
S-PSP Fee: set by the S-PSP S-SAP Fee: negotiated between S-SAP & FXP S-IPS Fee: set by the S-IPS Nexus Scheme Fee: set by NSO FXP Fee: set by FXP D-IPS Fee: set by D-IPS D-SAP Fee: negotiated between D-SAP & FXP D-PSP Fee: set by NSP , common to all D-PSPs
quotes FX rates for cross-border payments Source & Destination IPS (S-IPS, D-IPS): operate IPS in sender and receiver operates Source & Destination payment service provider (S-PSP, D-PSP): provide payment services to the sender and recipient Source & Destination Settlement Access Provider (S-SAP, D-SAP): provide accounts to FXPs, who is not a participant in a domestic IPS
Nexus does not prescribe all per-transaction fee components, allowing Nexus actors to ensure price competitiveness and to drive market competition
Figure 2.11 536
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