Cross-border payment systems are important to any global economy. For too long, however, there were many challenges that made them unsustainable, including high fees, slow speed, limited access and insufficient transparency.

In this article, Traderoot outlines how fintech cross-border payment schemes are transforming the global payments industry by providing faster, safer and cheaper cross-border payments.


Cross-Border Payment Schemes

Single Euro Payments Area (SEPA)

SEPA was launched by the European banking and payments industry with the support of national governments, the European Commission and the Eurosystem. The SEPA region consists of 36 European countries, including some countries that are not part of the European Union (EU).

SEPA enables consumers to make cross-border, cashless euro payments, via credit transfer and direct debit to anywhere in the European Union, including various other non-EU countries, in a fast, safe and cost-efficient manner.

Transactions Cleared on an Immediate Basis (TCIB)

TCIB is an agreement between all Southern African Development Community (SADC) countries to enable the immediate clearing of single credit “push” transactions, settled on a deferred basis. TCIB is open to all banks and authorised non-banks across the SADC.

TCIB was created to facilitate and maximise trade between countries, businesses and individuals within the SADC region. TCIB has removed many of the previous barriers which hindered payments within the region, successfully enabling affordable instant cross-border payments throughout the SADC region.


Traderoot ISO e-Bus to ISO 20022

The Traderoot ISO e-Bus is an Enterprise Service Bus (ESB) that enables diverse transaction stream integration to occur at the source. The Traderoot ISO e-Bus performs both pre-processing and post-processing for any payment stream data processed on domestic, regional and international Payment Market Infrastructure and enables real-time or batch-based transactions originating in Core Banking systems or Payment Hubs.

The Traderoot ISO e-Bus serves a large group of stakeholders in the Payments Ecology. These include Regional and Domestic real-time gross settlement (RTGS) operators, Regional and Domestic Automated Clearing Houses, System Operators and Financial/Payment Institutions.

ISO 20022 is fully supported as the generally adopted credit push message standard leveraged by most domestic faster payments schemes for example RPP (South Africa), STI (Angola) as well as regional faster payment schemes like TCIB (SADC) or international payment infrastructures like SWIFT. The e-Bus can perform common, central pre-and post-processing on key Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) parameters stated by FATF16 regulation.

“The Traderoot ISO e-Bus solution provides a holistic view of the payments environment that enables the solution to perform settlement and billing, reconciliation, reporting, and publishing functions that are agnostic to the payment streams that originate the transactions,” says Traderoot CEO, Jan Ludik.

Traderoot Europe is a strategic financial software development company that licences advanced business solutions for leading Fintech companies. We continually strive to deliver on our motto of Perfecting & Protecting Commerce by deploying solutions that incorporate open and closed issuing, acquiring, payment and reconciliation services.