New association formed to simplify international credit transfers

A group of 21 banks, clearing houses and associated payment service providers have launched the International Payments Framework Association (IPFA).

The body says its main purpose is to provide business rules, standards and operating procedures to improve non-urgent cross border credit transfers based on the ISO 20022 message standard by establishing a contractual framework.

At its inaugural meeting in London the IPFA has elected a board of directors - consisting of representatives from six banking institutions and three clearing houses - for a three year term.

Arthur Cousins of Standard Bank of South Africa was elected chairman with Equens' Michael Steinbach named vice-chairman.

April 2010 will see the commencement of live traffic between two IPFA members when the The Federal Reserve Bank in Atlanta and Equens will start with exchanging both USD and EUR payments between the USA and Europe.

Meanwhile, several IPFA members have begun planning for the inclusion, into the framework, of the Brazilian, Canadian, Mexican and South African currencies over the next two years.

The full list of members is ABN Amro, Canadian Payments Association, CamaraInterbancariade Pagamentos(CIP), Clear2Pay, Equens, Eurogiro, Federal Reserve Bank, Fifth Third Bank, JP Morgan, Nacha, PayPro, PNC, SECB Swiss Euro Clearing Bank, Standard Bank of South Africa, Standard Chartered Bank, Swift, The Clearing House, US Bank, VocaLink, Wells Fargo/Wachovia, World Savings Banks Institute and ZionsBancorp.