Start-up FinTech Banking Circle is using SIA, a subsidiary of CDP Equity, to run its real-time payment service in Europe, The Green Sheet reported on Thursday (July 22).
Based in Milan, Italy, SIA is one of the European leaders in the development and management of technological infrastructures for financial institutions, businesses and central banks. The company specializes in card and merchant solutions, digital payments and more.
The company works in more than 50 countries through its subsidiaries and branches in Austria, Belgium, Croatia, Czech Republic, Germany, Greece, Hungary, Netherlands, Romania, Serbia, Slovakia and South Africa. SIA also has representative offices in the UK and Poland, by Green Leaf.
Banking Circle, based in Luxembourg, has offices in the UK, Germany, the Netherlands and Denmark. The company chose SIA to introduce its instant payments service across Europe, in conjunction with the TARGET Instant Payment Settlement (TIPS) service of the Eurosystem.
Using the SIAnet fiber-optic network infrastructure, Banking Circle gives financial institutions and businesses in Europe the ability to facilitate instant payments, often in less than 10 seconds. Transfers can be made up to € 10,000 ($ 11,773) per transaction and align with the European Payments Council’s (EPC) SEPA Instant Transfer program.
“Banking Circle makes cross-border payments faster and more profitable for banks and payment companies, thereby improving the service they provide to their customers. Instant payments are a crucial part of this, ”said Michael Boel, local clearing manager, Banking Circle, per Green Sheet.
“We believe that being the first bank to use SIA’s network and cloud integration options sends a clear message that we are committed to getting as close as possible to central banks, automated clearing houses and clearing mechanisms and settlement, ”added Boel.
The partnership with SIA also allows Banking Circle customers to “benefit from the concession granted by the European Central Bank to SIA and Colt as network service providers for ESMIG (Eurosystem Single Market Infrastructure Gateway)”, according to the report.
Ginny Chappell, senior vice president of digital payments at FIS, told Karen Webster, CEO of PYMNTS, that approximately 40% of large accounts at traditional financial institutions cannot send or receive payments in real time.