July 16, 2024

Commerzbank updates its cross-border payment platform

April 03, 2024
2Min Reads
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In order to handle high-value and urgent payments through the TARGET 2 or EURO 1 payment systems, as well as cross-border payments via the Swift network, Commerzbank is modernizing its current payment platform in Germany.

In order to do this, the Bank is leveraging the PPI-developed TRAVIC-Payment Hub, which is natively capable of handling the formats that the International Organization for Standardization 20022 (ISO 20022) states are more frequent in international transactions.

 

By the end of 2025, the migration is expected to be finished. At that moment, Commerzbank plans to process all payment messages in Germany using the PPI platform for its clients' international treasury, foreign commerce, and liquidity management activities in ISO 20022 format. This includes payments in foreign currency made via the SWIFT network in the Cross Border Payments and Reporting (CBPR+) format, as well as high-value payments made within the Euro system for the TARGET 2 clearing system and the Euro Banking Association's (EBA) clearing system with EURO 1.Since the PPI platform was created natively for the required ISO formats, the Bank will have a simpler time integrating and introducing new products for international payments in the future.

These days, successfully executing international payment demands and expanding on current products in a financially sustainable manner require an ISO-native IT infrastructure. Systems that are not constantly built on ISO 20022 result in lengthy maintenance periods and additional expenses.

 

"Commerzbank is one of the leading banks for German foreign trade and wants to retain its leading market position in cash management, a position that has been confirmed in studies," says Simone Loefgen, Global Head of Payment Platforms at Commerzbank. Our DNA has included this for more than 150 years. We will be able to fully utilize ISO 20022 and provide our corporate and institutional clients, as well as our private and small business clients, with significantly better payment execution services and significant advancements for cross-border payments, thanks to the integration of the TRAVIC-Payment Hub from PPI AG.

 

Regarding the TRAVIC-Payment Hub, which Commerzbank licensed for high-value and international payments, Dr. Thorsten Völkel, CEO of PPI and Head of the payments division, states, "The software selected by Commerzbank is well developed, futureproof, and one of the highest-performing platforms on the market." "We are thrilled that Commerzbank has been persuaded by our product, both in terms of functionality and technicality."

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