Project Nexus is driving APAC cross-border payment innovation

Project Nexus is set to significantly reshape real-time cross-border payments, not just within Asia but potentially on a global scale. This initiative addresses the long-standing challenges of speed, cost, access, and transparency that often hinder international money transfers.

A recent and pivotal development in this endeavor occurred on April 3, 2025, with the formal establishment of Nexus Global Payments (NGP) in Singapore. This non-profit entity is spearheaded by the central banks of India, Malaysia, the Philippines, Singapore, and Thailand, signaling the project’s shift from a conceptual phase by the Bank for International Settlements (BIS) Innovation Hub to active implementation. Benjamin Lee, on secondment from the Monetary Authority of Singapore (MAS), has been appointed as NGP’s interim director. Furthermore, an open procurement process is now underway to select a Nexus Technical Operator (NTO) responsible for building and maintaining the infrastructure.

At its core, Project Nexus aims to connect domestic Instant Payment Systems (IPS) through a single, multilateral gateway. This design moves away from the complex and often costly bilateral connections that currently characterize cross-border transactions. By directly linking IPS systems, Nexus seeks to eliminate layers of fees and significantly reduce settlement times. Payments processed through Nexus are designed to be real-time, frequently completing in under 60 seconds. This initiative directly supports the G20’s objectives for enhancing cross-border payments, which include improving speed, lowering costs, broadening access, and increasing transparency. The project targets reducing the global average remittance cost from around 6% to below 3% and aims for 75% of cross-border transactions to be completed within one hour. Key milestones include a successful proof of concept in 2022, linking test versions of Eurosystem’s TARGET Instant Payment Settlement (TIPS), Malaysia’s Real-time Retail Payments Platform (RPP), and Singapore’s Fast and Secure Transfers (FAST). This was followed by a live implementation blueprint developed by the BIS Innovation Hub and ASEAN-5 central banks, released in July 2024. Initial use cases will focus on person-to-person transfers and SME payments, segments particularly sensitive to fees and delays.

The implications for financial institutions in the Asia-Pacific region are substantial. Nexus offers a streamlined approach to cross-border transactions, enabling banks to provide faster and more cost-effective services, which is particularly beneficial for SMEs and individuals with frequent international payment needs. It also facilitates access to new markets that were previously economically or operationally prohibitive. The shared infrastructure simplifies operational complexity in the diverse APAC region, allowing banks to modernize their systems in alignment with global standards without extensive overhauls. The adoption of ISO 20022 is fundamental to Nexus, providing a consistent structure for payment messages. This enhances interoperability and ensures richer, more detailed data in each transaction, which is crucial for compliance, reconciliation, and transparency.

The “one connection” model of Nexus promotes scalability and sustainability. Once connected, a bank can transact with all current and future participants, avoiding the fragmented “spaghetti” network of individual bilateral setups. Unlike commercial payment networks, Nexus is positioned as an open, neutral, and accessible industry utility. This inclusive approach particularly benefits smaller institutions or underserved markets, allowing banks to retain control over customer relationships and pricing. It complements existing networks by providing an alternative, often more efficient, route for IPS-based transactions. This framework encourages collaboration and alignment on global standards and rulebooks, which can free up resources for innovation and enhance interoperability across regions.

The next critical steps involve establishing the Nexus scheme organization to oversee its governance and operations, followed by expanding the network beyond Southeast Asia through new country onboarding. The European Central Bank and Bank Indonesia, having participated in earlier phases, will continue as special observers during the operationalization phase. While the BIS will not own or operate NGP, it will offer technical advisory support and facilitate knowledge transfer. This ongoing support is vital as Project Nexus works towards connecting a market of 1.7 billion people, aiming to make instant, affordable cross-border payments a widespread reality.