Introduction—the general theory

Today’s global payment infrastructure moves money from one system to another through a series of internal transfers between financial institutions; as these transfers occur across systems with little coordination, the settlement of funds is slow. High exchange rates and fees, unexpected processing fees, poor payment progress visibility, and high requirements create financial barriers and hinder an exceptional user experience.

Rapid payment systems, central bank digital currencies, the impending conversion to the ISO 20022 messaging standard, and the gradual extension of the settlement clock to a 24x7x365 cycle—create a new environment for financial institutions that need to rethink their existing payment strategy and infrastructure to remain relevant.

Changing market trends and a 5% annual increase in the overall global flow of cross-border payments have led to new players changing the nature and internal dynamics of the market, along with the changing needs of individual consumers and businesses who expect payments to be made immediately, transparently, and efficiently.

TKEY7 offers market participants a more modern, fast, and transparent way to process payments of any size without using an intermediary bank and by applying new Settlement Methods. The system provides Members with a stable payment channel with bilateral consistency, and instant finality of settlements helps facilitate cross-border settlements with compliance with regulatory requirements and control at each level.