Spain has achieved a ground breaking milestone in the evolution of global payments by becoming the first European banking area fully connected to the European Payments Council’s (EPC) One-Leg Out (OCT Inst) scheme.

This innovative scheme enables instant cross-currency payments between SEPA countries and regions outside the eurozone, marking a transformative leap in international payments efficiency.

The Spanish banking sector’s adoption of the OCT Inst scheme, supported by Iberpay’s robust instant payment infrastructure, positions it as a trailblazer in cross-border payment modernisation.

This achievement follows the EPC’s May 2024 approval of Iberpay as the first European payment system authorised to process international instant transfers under the OCT Inst framework.

The entire Spanish banking community joined the scheme on November 4, leveraging Iberpay’s advanced technology and standards to facilitate seamless international payments.

The journey to this milestone included a successful pilot in June 2023, involving major financial institutions such as CaixaBank, Santander, BBVA, and SWIFT.

The initiative demonstrated the feasibility of processing and settling cross-currency instant payments in real-time, ensuring end-to-end transparency and enhanced transaction visibility.

Cross-Currency Payments

The OCT Inst scheme empowers payment service providers (PSPs) within the SEPA region to handle international transfers 24/7, regardless of time zones.

Transactions are completed within seconds, leveraging established European instant payment systems.

This capability not only improves payment speed and transparency but also reduces costs, aligning with the G20’s global objectives for international payment enhancement.

The scheme also opens doors for new use cases and competitive payment services, enabling Spanish banks to stand out in a rapidly evolving global financial landscape.

By adopting the OCT Inst scheme, Spain is setting a new benchmark for international financial connectivity and economic integration.

Iberpay’s Role as a Catalyst

Iberpay, a key player in the initiative, has solidified its position as a leader in payment technology and innovation in Spain.

Speaking about Santander’s onboarding in May, Iberpay CEO Juan Luis Encinas emphasised the transformative potential of the infrastructure.

“Providing the infrastructure and services necessary for processing international cross-currency instant transfers is a significant step forward for Iberpay, enabling our banks to offer new innovative services, to improve the customer experience, and to remain highly competitive in the global payments industry,” Encinas said.

Spain’s leadership in adopting the OCT Inst scheme showcases the country’s commitment to advancing payment solutions and strengthening its competitive edge.

This achievement not only enhances the Spanish banking sector but also underscores Europe’s broader ambitions to revolutionise cross-border payments with speed, cost-efficiency, and transparency at the core.

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