Cross-border money transfers by Corpay enabled through blockchain technology, streamlining client foreign exchange conversions.
In a significant move to revolutionise cross-border foreign exchange (FX) services, Corpay, Inc., a global leader in corporate payments, has integrated J.P. Morgan's Kinexys Digital Payments blockchain as a payment rail. This partnership unlocks new capabilities and efficiencies in cross-border and cross-currency transactions, offering faster, more flexible, and secure payment processing.
Kinexys Digital Payments, a payment rail for near real-time value transfer using commercial bank money, is offered through Kinexys by J.P. Morgan. The blockchain solution aims to streamline FX conversions, significantly reducing settlement times—often to under 30 seconds—while minimising counterparty settlement risk and improving liquidity management for Corpay's internal Treasury operations.
Key benefits of this partnership for Corpay’s clients and treasury team include faster FX settlements, extended trading hours, improved internal liquidity management, and reduced settlement risk. Clients can now settle transactions in minutes, even after traditional market hours, and gain access to round-the-clock FX trading. The blockchain rails also facilitate more efficient Treasury liquidity use cases, helping optimise working capital management through programmable, frictionless FX payments.
A recent use case showed a UK-based Corpay Cross-Border client receiving USD and booking an FX trade to convert and pay to their GBP account in the UK, after the market close on a Friday evening. The trade settled within minutes using Kinexys Digital Payments, and the client received GBP in their account via the UK Faster Payments network. This demonstrates the speed and efficiency of the new technology, providing a level of settlement speed not possible on traditional fiat FX rails without a significant lockup of liquidity.
Paul Bregg, Treasurer of Corpay Cross-Border Solutions, expressed excitement about the new technology, stating, "Kinexys Digital Payments has transformed our cross-border FX services, enabling us to offer faster, more flexible, and secure payment processing to our global client base."
Zack Chestnut, Global Head of Business Development for Kinexys Digital Payments, expressed pleasure in supporting Corpay and their clients, saying, "We are thrilled to partner with Corpay, a global leader in corporate payments, to deliver superior cross-border FX services. Our blockchain solution is designed to empower businesses like Corpay to optimise their internal treasury functions while providing their clients with unparalleled speed, flexibility, and security in cross-border FX transactions."
Since its inception, the Kinexys platform has processed over $1.5 trillion in notional value, with payments transactions on the platform growing by 10x year-over-year. The platform processes an average of more than $2 billion daily in transaction volume, underscoring its robustness and reliability.
With this integration, Corpay Cross-Border can utilise Kinexys Digital Payments to offer faster and more flexible foreign exchange services to their global client base, setting a new standard for cross-border FX transactions.
ffnews.com could publish an article about Corpay Cross-Border's integration of J.P. Morgan's Kinexys Digital Payments, highlighting its uses in finance, technology, and business to streamline foreign exchange conversions and optimize working capital management.
Zack Chestnut, Global Head of Business Development for Kinexys Digital Payments, might share with ffnews.com how this partnership with Corpay could lead to significant growth in the platform's transaction volume, given the platform's current daily average of over $2 billion and year-over-year growth by 10x.
