Citi and Mastercard look to transform global cross-border payments

Citi and Mastercard have announced a collaboration to offer cross-border payments to Mastercard debit cards in 14 receiving markets worldwide, with plans for further expansion. The initial markets are Croatia, the Czech Republic, Denmark, Hungary, Israel, New Zealand, Peru, Poland, Romania, Singapore, South Africa, Turkey, the UK, and the US.

Leveraging Citi’s WorldLink Payment Services and Mastercard Move’s money transfer capabilities, Citi clients can make near-instant, full-value payments with near 24/7 availability to consumers using their Mastercard debit card details. Citi is the first global bank to enable cross-border payments to Mastercard debit cards using Mastercard Move.

The integrated solution is available to Citi clients based in Mastercard-approved markets across 65 origination countries in the corporate, financial institutions, e-commerce and commercial sectors. The pair say the solution helps make cross-border payments simpler, faster, more efficient and more accessible. Its use cases include insurance payouts, airline refunds and compensation payments, on-demand payments to freelance and gig-economy workers, e-commerce payments to merchants and refunds to customers.

This solution deepens Citi’s collaboration with Mastercard by enabling enhanced money movement capabilities and access for Citi’s Treasury and Trade Solutions (TTS) clients.

“As the global economy has become increasingly digital, our continued investment in the future of cross-border payments helps us drive innovation at scale for our clients,” said Debopama Sen, Head of Payments, Citi Services. “This collaboration builds on our longstanding relationship with Mastercard and leverages the strength of our global proprietary network combined with other leading digital wallet and card capabilities to enable our clients to make cross-border payments as though there are no borders, no currencies, no constraints.” 

 

Supply chain spare capacity increases again

The GEP Global Supply Chain Volatility Index decreased in September to -0.43, down from -0.37 in August. This represents its lowest level in 14 months and indicates the greatest level of global supply chain spare capacity since July 2023.

The rise in underutilised vendor capacity was driven by a further deterioration in global demand. Factory purchasing activity was at its weakest in the year-to-date, with procurement trends in all major continents worsening in September and signalling gloomier prospects for economies heading into Q4.

Notably, supplier spare capacity shot up again in North America. US manufacturers lowered their purchasing volumes aggressively in September, with a slowing of the US economy denting factory orders.

In Asia, supply chain spare capacity also rose to a year-to-date high. Slowing economic conditions in other parts of the globe led factory procurement activity in China to fall for a third straight month in September. There was also the devastating impact of Typhoon Yagi across Southeast Asia. Vietnam was affected in particular, causing vendors supplying this part of the region to suffer as a result.

Europe’s industrial recession intensified, reflecting the blight of major manufacturers in the continent due to macro factors like competitive pressures from China, high energy costs and a flagging eurozone economy.

“September is the fourth straight month of declining demand and the third month running that the world’s supply chains have spare capacity, as manufacturing becomes an increasing drag on the major economies,” explained Jagadish Turimella, president, GEP. “With the potential of a widening war in the Middle East impacting oil, and the possibility of more tariffs and trade barriers in the new year, manufacturers should prioritise agility and resilience in their procurement and supply chains.”

 

Canada outlines mandatory climate disclosure requirements for private companies 

As part of Canada’s plan to grow its economy and reach net-zero emissions by 2050, its government has announced a plan to deliver Made-in-Canada sustainable investment guidelines and mandatory climate-related financial disclosures for large, federally incorporated private companies.

The Made-in-Canada sustainable investment guidelines are designed to become an important, voluntary tool for investors, lenders, and other stakeholders navigating the global race to net-zero by credibly identifying “green” and “transition” economic activities. These guidelines aim to provide the certainty needed to accelerate the flow of private capital into sustainable activities across the Canadian economy. From building electric vehicle batteries to generating clean energy to decarbonising emissions-intensive heavy industries, these guidelines will identify job-creating activities in a way that is scientifically credible and aligned with limiting global temperature rise to 1.5°C above pre-industrial levels. The Canadian taxonomy will be developed and governed by an external, third-party organisation(s).

The mandatory climate-related financial disclosures for large, federally incorporated private companies are designed to help investors better understand how large businesses are thinking about and managing risks related to climate change, ensuring that capital allocation aligns with the realities of a net-zero economy. Specifically, the government intends to bring forward amendments to the Canada Business Corporations Act that will require these disclosures. The government will launch a regulatory process to determine the substance of these disclosure requirements and the size of private federal corporations that would be subject to them. As small- and medium-sized businesses will not be subject to the requirements, the government is considering ways to encourage those businesses to voluntarily release climate disclosures if they wish.

The government hopes that these two sustainable finance initiatives will mobilise further private sector capital towards activities essential to building a net-zero economy. More private sector capital will enable businesses to grow the economy, create more good-paying jobs for Canadians, and boost their resiliency against the risks posed by climate change.

“In the 21st century, a competitive economy is a net-zero economy,” said Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance. “We are seizing Canada’s economic advantages to attract investment and ensure Canadian workers benefit their fair share in the global race to net-zero. Today’s release of a path for Made-in-Canada sustainable investment guidelines and climate disclosures from large companies will accelerate the flow of private capital into Canada, in turn growing our economy, creating good jobs, and advancing our progress to net-zero emissions by 2050.”

 

Kyriba adds AI-driven platform for financial agility and operational connectivity

Kyriba has announced an AI-driven platform designed to enhance financial connectivity and operational agility for CFOs and their teams. Kyriba App Studio aims to eliminate “liquidity gridlock”, simplify API adoption, and streamline integrations for any software that supports APIs, including ERPs. 

A Gartner survey found that 63% of CFOs are prioritising improving their forecast capabilities, which underscores why real-time financial information is crucial for CFOs dealing with complex financial situations. APIs have been a proven solution but they often require development work. Kyriba App Studio is designed to bridge this gap, giving financial teams complete control over their operations without relying on tech savvy resources, ultimately unlocking new levels of productivity, agility, and competitive advantage.

Kyriba App Studio creates a real-time, data-driven financial ecosystem by enabling ERPs and any software that supports APIs to generate and transmit transactions such as payment requests and cash forecasts, among other requests, converting them to Kyriba’s specifications. It also retrieves financial data, such as cash accounting or payment status, and transforms it to meet customer-specific requirements.

The solution simplifies API integration by allowing data requests and transformations from ERPs and business systems. This helps reduce complexity and resource demands, which is important for customers to be able to create better forecasts and have more visibility into their liquidity.

Users can initiate workflows on a set schedule within Kyriba, as well as trigger them through external processes using APIs. This adaptability allows for seamless customisation to meet specific business needs, giving CFOs and their teams enhanced operational control. By leveraging strong authentication and encryption protocols, Kyriba App Studio upholds data integrity and security across all transactions, meeting compliance requirements for system integrations.

 

CBI and SEPAmail.eu to set up interoperable IBAN-name check VoP solution

SEPAmail.eu and CBI are combining their IBAN-Name Check expertise to offer an interoperable solution to fight against fraud. This partnership enables the Italian and French communities, via their payment services provider (PSP), to secure their cross-border payments in offering a high added-value service to meet the requirements of the Instant Payment Regulation and beyond.

The IBAN Name Check – VoP [Verification of Payee] Service is designed to ensure that IBAN codes are correctly matched with the names of beneficiaries before payments are processed. This verification process is crucial in mitigating fraud, preventing payment errors, and ensuring that funds are accurately directed to their intended recipients. This service aims to provide an additional layer of security for financial transactions, thus helping to reduce the risk of fraudulent activity and accidental misdirection of payments.

Through this collaboration, PSPs connected to the interoperable solution will gain access to a verification service. This joint initiative will expand, across Europe, a VoP solution that can enhance the security of SEPA Credit Transfers (SCT) and Instant Payments (SCT Inst) and also other value-added services.

The service aims to help PSPs to comply with regulatory standards while strengthening the security of their payment systems. The interoperable solution, developed by CBI and SEPAmail.eu, adheres to European standards and provides a unified method for verifying IBAN in financial transactions.

“In an increasingly digital and interconnected world, where cyber scams and frauds targeting citizens and businesses are on the rise, we remain committed to providing our customers with the tools they need to conduct transactions securely and efficiently,” commented Liliana Fratini Passi, Managing Director of CBI.

 

AutoRek to improve data consolidation and reconciliation with Swift

AutoRek has joined the Swift Partner Programme to improve and simplify the consolidation and reconciliation of financial data. Working with Swift will deliver greater integration for firms between their operational processes and third-party data sources, enabling streamlined data management and ingestion. 

Driven by a predefined catalogue of API connections, AutoRek will consume messages directly via the Swift network, enhancing the efficiency of critical reconciliation processes and wider data management. Connecting AutoRek to the Swift network will remove the need for the company’s customers to source and manage files of statements from the external parties they do business with.

Building on this capability, AutoRek says it will also explore the development of new tools and products to help its customers further benefit from its connection to the Swift network.