Cross-border payments are of the utmost importance to financial institutions all over the world. Making an impact in this industry is not straightforward. UniCredit has been working on a new payment corridor between Italy and Germany. This instant payment solution has now rolled out to all customers in both countries. Transactions can be completed in as little as 2.5 seconds.
It is good to see some real progress made in the world of cross-border payments. So far, these transactions are too slow and far too expensive. UniCredit successfully trialed its inaugural instant payment from Germany to Italy, With much lower fees and virtually real-time completion, there is a lot of promise as far as this solution is concerned. This goes to show the current speed of regular transactions is only a mirage. There is no reason for a money transfer to take anywhere from one to five business days whatsoever.
UniCredit Speeds up Cross-Border Payments
This new service marks the beginning of UniCredit’s rollout of instant payments. This is part of an initiative started by the European Central Bank. Instant payments are direly needed across European countries. Moreover, the transaction limit of 15,000 euro per transfer should be more than sufficient. Although only accessible between Germany and Italy it will roll out to other countries as well.
UniCredit Global Co-head of CIB Gianfranco Bisagni comments:
“After a very focused development and implementation process, the official launch today is a proud moment for us. We have always aimed to lead the way on developing instant payments solution for our clients and we are excited about the benefits this new service will bring to our clients – promoting speed and transparency through 24-hour, 365-days-a-year coverage and real-time notifications of successful payments.”
For now, UniCredit limits this service for inbound payments in Italy and Germany. Once the first week has passed, the outbound payment execution will be available in Germany. Italy will get this latter functionality by the end of February 2018. It marks an important milestone in the world of banking and cross-border payments. Moreover, it doesn’t appear blockchain technology is involved in this method whatsoever. That may surprise some people, but it is evident there are many ways to improve upon cross-border payments.
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