Banco Santander and Iberpay announce that on May 14, their respective payment technology platforms have processed the first international instant transfers based on the EPC's One-Leg-Out (OCT Inst) scheme, initiated and completed in different currency areas.

The One-Leg Out (OCT Inst) scheme allows payment service providers (PSPs) in the SEPA area to process instant international transfers from and to countries outside the euro area, in just a few seconds and available 24x7x365, avoiding differences between time zones worldwide, whilst leveraging existing instant payment standards and systems in Europe based on the EPC's SCT Inst scheme. This operative improves significantly the customer's user experience, facilitates the creation of new use cases, and enables the development of highly innovative payment services that compete with new players in the international payments sector.

The One-Leg Out (OCT Inst) scheme has been designed to enhance and streamline international payments that require currency exchange in terms of speed, availability, cost, accessibility, and transparency, in line with the strategy and roadmap set by the G20 and other international organizations such as the European Commission, the World Bank, or the International Monetary Fund, as well as with the objectives for improving these international payments established by the Financial Stability Forum (FSB) for the year 2027.

The service provided by Iberpay is based on the same technology as instant credit transfers in euros (SCT Inst scheme), which today correspond over 53% of all credit transfers processed in Spain. With the new operational procedure implemented, the start or end of international payments within the euro area between the intermediary bank and the initial ordering bank, or the final beneficiary bank, is significantly accelerated. Among the main advantages of this solution are the ability to process international payments in seconds and 24x7, greater transparency of information and end-to-end payment traceability.

Juan Luis Encinas, CEO of Iberpay, emphasizes that: "The implementation of the One-Leg Out (OCT Inst) scheme marks a key strategic milestone for payments in Europe and reinforces Iberpay's strategic position as one of the most advanced payment systems, demonstrating our commitment to significantly improve international payments between different currencies in terms of processing speed, 24x7 operation, information transparency, accessibility, and cost reduction. Providing the first infrastructure in Europe and the necessary services for processing instant international transfers between different currencies represents a very significant step for Iberpay, allowing our banks to offer new and innovative services, improve the experience for their customers, and strengthen their competitiveness in the global payments industry."

With this initiative, Santander takes another step in its strategy to fully leverage the scale and synergies derived from the connectivity of its global technological platform, facilitating the complete payment cycle for its personal and corporate clients, simplifying the value proposition, and reinforcing its commitment to international business in order to offer a wide range of innovative solutions and integrated value-added services.

Jaime Uscola, Director of Enterprise Products, International Business and Payments at Santander Spain, said: "We are proud to be pioneers launching this innovative service, making it available to our customers and adapting to their needs. Santander is committed to advancing and taking all necessary steps in order to evolve in international instant payments, adapting our offerings to the needs of all our clients, and this movement is a clear example of that commitment."

It is worth noting that in 2023, Santander reached €26,660 million in international business financing from more than 168,000 Spanish companies that channel their international payments with the support of the bank. Santander has continued to enhance the digital capabilities of companies, and last year launched in Spain One Trade Multinationals, a new treasury management solution aimed at companies with international presence, which provides them with a unified view of their subsidiaries worldwide.

As the next milestone, the Spanish banking community has agreed to the full adoption of this service starting in October this year, and for this purpose, the rest of the banks are preparing to connect to Iberpay's service over the coming months. This consensus reflects the strong commitment of Spanish banks to innovation and continuous improvement of payment services in our country, which undoubtedly impacts their service to clients, both individuals, corporates and administrations, and improves the digitization and efficiency of the Spanish economy.

About Banco Santander:

Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial bank founded in 1857 with headquarters in Spain and one of the largest banks in the world by market capitalization. The group's activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This model allows the bank to better leverage its unique combination of global scale and local leadership. Santander aspires to be the best open platform for financial services for individuals, SMEs, corporates, financial institutions, and governments, with the mission of contributing to the progress of people and businesses by doing things in a simple, personal, and fair manner. Santander is advancing in responsible banking and has set several goals, including facilitating 220 billion euros in green financing from 2019 to 2030. In the first quarter of 2024, Banco Santander involve 13 trillion euros in total customer resources, 166 million customers, 8,400 branches, and 211,000 employees.

About Iberpay:

Iberpay manages the Spanish payment system, a critical and neuralgic interbank infrastructure in the European payment network that connects virtually all banks operating in Spain and Andorra to process and settle account-to-account payments in euros for their clients, citizens, companies, and administrations within the SEPA area (36 European countries, 4,000 banks, and 800 million accounts), mainly: instant credit transfers, request to pay, credit transfers, and direct debits.

Iberpay processed over 3 billion payments in 2023, totalling 2,7 trillion euros. This represents more than twice the Spanish GDP, with daily peaks of over 28 million. Regarding instant payments, Iberpay processes an average of 2,77 million instant credit transfers daily, totalling over 327 million euros. Approximately 53% of all transfers processed in the payment system managed by Iberpay are already instant credit transfers.

Iberpay's Purpose is "To contribute decisively to the digitization, innovation, profitability, and sustainability of the banking sector, in order to drive economic development and societal well-being" and its Mission is "To be the most efficient, resilient, fast, and internationally connected European payment system, with the highest guarantees. To position the banking sector at the forefront of payments, technology, and digitization, being a key strategic partner".

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