Spain’s Iberpay and Santander have become the first participants in the European Payment Council’s new OCT Inst scheme, which enables faster international account-to-account payments.
The OCT Inst (One-Leg Out (OLO) Instant Credit Transfer) scheme aims to extend the benefits of SEPA to international payments. This cross-currency payment system supports both incoming and outgoing international instant account-to-account credit transfers. It is the first EPC scheme dedicated exclusively to the Euro leg of international instant credit transfers that enter or exit the SEPA geographical area.
Designed to enhance the speed of international payments, the scheme also offers greater transparency regarding costs and improved traceability of payment statuses. Although the scheme went live in November, the delay in the ISO20022 migration for all SEPA schemes caused payment service providers and clearing and settlement mechanisms to replan the start of their operations.
Iberpay is set to serve as the inaugural clearing and settlement mechanism for OCT Inst transactions through Santander, and will also act as a scheme participant in the processing role.
Giorgio Andreoli, director general of the EPC, expresses pride in launching this innovative scheme, stating that it addresses market needs and policy objectives while having the potential to transform international instant payments through a multilateral scheme-based approach.
Juan Luis Encinas, CEO of Iberpay, emphasizes that providing the necessary infrastructure and services for processing international cross-currency instant transfers marks a significant advancement for Iberpay, enabling banks to deliver innovative services, enhance customer experience, and maintain a competitive edge in the global payments landscape.