Project Nexus to transform global payments, going live in 2026

Project Nexus is poised to revolutionise the global payments landscape by seamlessly connecting instant payment systems (IPS) across countries, significantly enhancing transaction speed, lowering costs, and boosting cross-border connectivity.

Global integration and efficiency

Project Nexus is designed to create a global network of interconnected IPS, enabling near-instant cross-border payments. The project's primary objectives are to reduce transaction costs, enhance payment speed, and increase transparency in international transactions. By establishing a uniform standard, Project Nexus aims to simplify cross-border transactions and ensure consistency across diverse countries.

Nexus is a ‘behind-the-scenes’ service that will be used by IPS operators and their member payment service providers (PSPs) to route instant cross-border payments. An IPS operator connects to Nexus and then uses a common set of application programming interfaces (APIs) and ISO 20022 messages to exchange payment instructions and other related information with another IPS operator via the Nexus technology. This standardisation benefits IPS operators by eliminating the need to build multiple bilateral links. This innovation will enable transactions to be processed within 60 seconds or less, greatly enhancing transaction speed and access.

Agustín Carstens, BIS general manager, highlighted the project's vast potential: “Even with just the first wave of connected countries, Nexus has the potential to connect a market of 1.7 billion people globally, facilitating easy and cost-effective instant payments.”

A pivotal development in Project Nexus is the formation of the Nexus Scheme Organisation (NSO), responsible for managing the project's implementation. The NSO, owned by participating central banks and IPS operators, will oversee the scheme's operation. The BIS will provide advisory support but will not manage the NSO directly.

The NSO will facilitate live implementation, with central banks and IPS operators working together to establish this new entity. In developing the blueprint for Phase three, the BIS has supported central banks in finding innovative solutions, aligning with the G20 Roadmap for Enhancing Cross-border Payments.

BIS’s role in Nexus’s development

The BIS Innovation Hub played a key role in incubating Project Nexus, providing critical support from its conceptual stage to the completion of the Phase three blueprint

Maha El Dimachki, head of BIS Innovation Hub Singapore Centre, said: “The BIS Innovation Hub incubated Project Nexus from the initial concept through proof of concept to the stage three blueprint. We are now working with the central bank team to support this implementation.”

Although the BIS will not directly manage the NSO, it will continue to provide technical support and facilitate collaboration between central banks. “The BIS plays a neutral role in supporting the design of Nexus to deliver the public policy, scalability and inclusivity objectives,” she added.

The NSO will oversee the governance of Nexus, including the Nexus Scheme Rulebook, which will define participants' rights and obligations. It will also oversee the Nexus Technical Operator (NTO) which will be selected via a competitive bidding process. NTO will manage the platform’s day-to-day technology and operations.

“Nexus is one of the first BIS Innovation Hub projects adopted by a coalition of interested central banks working towards live implementation. This fulfils one of the key mandates of the BIS Innovation Hub to develop public goods in the technology space to support central banks and improve the functioning of the financial system,” she added.

Agustín Carstens, General Manager, Bank for International Settlements 

Maha El Dimachki, Head of BIS Innovation Hub Singapore Centre

Key ASEAN and Indian financial regulators join the initiative

The success of Project Nexus relies on collaboration among central banks and financial regulators from Southeast Asia and India. In phase four, the RBI will join existing partners, including BNM, BSP, MAS, and BOT. India's UPI's involvement is a significant milestone, adding expertise and volume to the network.

Bank Indonesia (BI) will participate as a special observer. The agreement, signed on 30 June 2024 in Basel, Switzerland, highlights the project's importance.

BI governor Perry Warjiyo emphasised Nexus’s commitment to interoperable cross-border payments.

This vision aligns with broader public policy objectives and aims to provide efficient and affordable cross-border payment solutions to individuals and businesses worldwide, thereby enhancing global economic participation.

“The goal is to enhance a seamless and secure cross-border payment system that promotes economic growth, financial inclusion, and sustainable development,” Warjiyo said.

Eli M. Remolona, Jr., BSP governor underscored the benefits of Project Nexus for the Philippines. He said that the initiative will significantly impact cross-border payments by maximising the network effects.

“We look forward to Nexus providing overseas Filipinos with a cheaper and faster means to send money to family back home, and facilitating the globalisation of Filipino small and medium scale enterprises,” Remolona, Jr. added.

The BSP will continue to work with the Philippine payments industry, BIS, and other interested countries towards its live implementation.

Perry Warjiyo, Governor, Bank Indonesia 

Eli M. Remolona, Jr., Governor, Bangko Sentral ng Pilipinas

Nexus offers a transformative approach to cross-border payments, providing accessible, secure, and convenient instant transactions, aligning with G20 and ASEAN priorities, according to Chia Der Jiun, managing director of MAS.  

“Important work lies ahead, and we look forward to working closely towards the live implementation of Nexus in the next phase,” Chia said.

Sethaput Suthiwartnarueput, governor of the Bank of Thailand, expressed support for Project Nexus, emphasising its potential to resolve challenges faced by workers abroad in traditional transactions. He also highlighted its goal of swiftly connecting with other global economies. “While Nexus has started in ASEAN, it has a global ambition—as it will be able to link up very easily and speedily with other economies.” 

Chia Der Jiun, Managing Director, Monetary Authority of Singapore

Sethaput Suthiwartnarueput, Governor, Bank of Thailand

Highlighting the progress of the initiative, Abdul Rasheed Ghaffour, BNM governor, underscored the collaboration between ASEAN central banks and the BIS in developing next-generation cross-border payment infrastructure. He said, “Phase three brings us closer to implementing next-generation cross-border payment infrastructure, benefiting our nations and enhancing global payment connectivity. We welcome India to the next phase of Project Nexus.”

India's UPI, handling over 400 million transactions daily, is a global leader in fast payments. RBI governor Shaktikanta Das welcomed Project Nexus for linking the Fast Payment Systems of six founding countries, promising to accelerate and reduce the cost of cross-border transactions. He said, “The greatest advantage of Project Nexus will be to make cross-border payments much faster and less costly.”

Das said, according to a World Bank assessment, the average cost of remitting $200 across borders is about 6.2%. Project Nexus will bring down this cost. Das also affirmed India's readiness to share its expertise for the initiative's success.

Abdul Rasheed Ghaffour, Governor, Bank Negara Malaysia

Shaktikanta Das, Governor,  Reserve Bank of India

Country-specific payment initiatives

Several countries have already adopted IPS interlinking, such as the 2021 linkage between Singapore's PayNow and Thailand's PromptPay. Southeast Asia is rapidly expanding its network, with additional linkages between Malaysia, Thailand, and Indonesia, and P2P connections between Singapore and India.

Project Nexus will integrate various domestic IPS to improve global interoperability. Key systems include:

Philippines: PESONet and InstaPay for high-value and real-time payments.
Singapore: FAST for instant inter-bank transactions.
Thailand: PromptPay for simplified transactions and immediate fund transfers.
India: UPI integrates multiple bank accounts into a single app.

Project Nexus offers substantial benefits for both consumers and corporations. It promises faster, cheaper, and more transparent cross-border payments for individuals, while reducing transaction costs and streamlining processes for corporations engaged in international trade.

Ma-an David, domestic payables lead for global payments solutions in Asia Pacific at HSBC, said: “As a corporate, you don’t want to be opening accounts everywhere in all the corridors you need to do transactions with. BIS, particularly within the ASEAN 5, is leading a movement to interconnect real-time payment infrastructures in a multilateral manner, making investments more efficient.”

Ma-an David, Domestic Payables Lead for Global Payments Solutions in Asia Pacific, HSBC

Project Nexus aims to standardise and improve domestic IPS connections globally. By integrating systems like PESONet, FAST, PromptPay and UPI into a unified network, it will enhance interoperability and reduce complexities in cross-border transactions.

Challenges and opportunities

Project Nexus presents both substantial opportunities and notable challenges, including navigating diverse regulatory landscapes and establishing a viable business model. It will open the cross-border payments market to a broader range of participants, but access will vary based on financial inclusion and local connectivity.

By 2026, Project Nexus is set to transform cross-border transactions, enhancing payment efficiency and deepening global economic integration. Stakeholders must leverage the groundbreaking opportunities this initiative presents to drive forward the future of global payments.

El Dimachki emphasised, “While Nexus is essentially an IPS multilateral interlinking design, it can also be a platform for further innovation and enhancements in the global financial system.” This aligns with other projects, such as Project Rialto for clearing and settlement, and Project Mandala for streamlining compliance.

Nexus paves the way for ongoing collaboration and future advancements in financial systems.