European payment providers join forces on cross-border initiative

The European Payments Alliance (EuroPA) and the European Payments Initiative (EPI) have announced a collaboration aimed at improving cross-border payment connectivity across Europe. The agreement brings together payment providers Bancomat, Bizum, MB WAY (SIBS), and Vipps MobilePay under the EuroPA banner, working alongside EPI to explore technical solutions that enhance interoperability between existing domestic systems. The study is expected to conclude by the end of this summer.

The initiative covers 15 countries, representing more than 382 million people, or 84% of the EU population plus Norway. The goal is to enable citizens to continue using their preferred local payment solutions across borders, supporting both person-to-person and merchant transactions online and in-store.

The two groups aim to address what they describe as Europe’s “sovereignty challenge” in payments, focusing on independence and efficiency. By linking established national platforms, the collaboration seeks to provide coverage in markets that currently lack widely adopted digital payment systems, while improving ease of use and consistency for consumers and merchants.

The announcement highlights alignment with policy goals set by the European Commission and the Eurosystem, which have previously called for greater autonomy in Europe’s payments landscape. Further details, including how the systems will be interconnected or governed, have not yet been disclosed. However, both parties frame the initiative as a fast-track route to European payment independence by building on existing infrastructure and adoption.

 

Banks eye growth as firms rethink supply chain resilience

Amid ongoing global volatility, businesses are shifting supply chain strategies away from cost efficiency and towards resilience. This move is opening up new opportunities for banks, according to a report by Datos Insights. The report, authored by Benjamin Nestor and Enrico Camerinelli, explores how commercial banks can support corporate clients facing liquidity constraints, disrupted trade flows, and regulatory uncertainty. It argues that financial institutions are well placed to help firms adapt through tools that enhance visibility, bolster working capital, and support scenario planning.

Supply chain resilience is no longer a long-term ambition but a short-term necessity. The report describes the current business climate as a “permacrisis” shaped by inflation, extreme weather events, shifting regulations, and geopolitical tension. These factors are driving a notable shift in treasury and procurement priorities, with businesses favouring inventory buffers and stronger supplier risk controls over just-in-time efficiency.

Working capital has become a critical pressure point. Many firms now face elevated cash requirements as they build stockpiles, diversify suppliers, and absorb cost fluctuations tied to tariff changes and regulatory uncertainty. This, in turn, is prompting a renewed focus on financial solutions that support liquidity and visibility.

For banks, the report highlights a growing opportunity to position themselves as strategic partners rather than product providers. Use cases include real-time payments, dynamic receivables and payables solutions, supply chain finance, and trade finance modernisation. Payment data analytics and working capital optimisation are also flagged as key areas where banks can add value.

More than a product push, the report suggests that resilience can serve as a thematic lens for go-to-market strategies and client engagement. Financial institutions that can align their roadmaps and messaging with clients’ evolving risk profiles stand to deepen relationships and grow share in a competitive market.

While the report focuses primarily on the North American market, its findings resonate across global supply chains facing similar stressors. As businesses adjust their models in response to systemic shocks, banks that understand and respond to these shifts will be better equipped to serve as trusted partners in navigating uncertainty.

 

China and Hong Kong connect real-time payment systems

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) will launch Payment Connect on 22 June 2025, linking Hong Kong’s Faster Payment System (FPS) with China’s Internet Banking Payment System (IBPS). The new arrangement enables real-time, small-value cross-border remittances between the two markets. Users can transfer funds by entering a mobile number or account number, eliminating the need for traditional bank transfer details. The system is designed to support secure, efficient, and convenient payments for both individuals and institutions.

At launch, six banks and payment institutions from each side will offer the service, with a gradual rollout planned and additional participants expected over time. The integration aims to improve cross-border payment efficiency, support bilateral trade, and meet rising demand for quick, low-cost money transfers. The HKMA said the system will cater to the daily remittance needs of residents and enhance connectivity for businesses and individuals alike.

Payment Connect builds on Hong Kong’s position as a renminbi offshore centre and forms part of wider efforts to deepen financial cooperation. It follows similar initiatives in securities, bond trading, and wealth management that link the two financial systems.

The FPS, introduced in 2018, allows for instant payments in Hong Kong dollars and renminbi. IBPS facilitates real-time interbank transfers within China. By linking the two, Payment Connect removes friction from small-value cross-border payments and offers a more seamless experience for users.

 

ICD Portal users gain direct access to T-bill trading

Tradeweb has launched U.S. Treasury bill trading for corporate treasurers through a direct connection between its institutional trading platform and the ICD Portal, offering users a more streamlined way to manage short-term investments. The move enables ICD Portal users to execute T-bill trades alongside money market funds, bank deposits, and other instruments within a single platform. The integration is intended to support greater automation, price transparency, and operational efficiency across treasury workflows.

This marks the first step in a broader plan to expand fixed income access for corporate treasury teams following Tradeweb’s acquisition of Institutional Cash Distributors in 2024. By linking the portal directly to its institutional platform, Tradeweb aims to deliver straight-through processing for high-liquidity products and facilitate risk transfer in key currencies.

The launch comes amid continued demand from corporates for flexible, centralised tools to manage cash and short-term investments. ICD Portal currently supports over 550 corporate treasury organisations and facilitates more than US$4.5 trillion in annual trading volume. Around 17% of S&P 100 companies use the portal, as of the end of 2024.

Tradeweb has signalled plans to expand its fixed income offering for corporate users, aligning product development with the evolving needs of treasury teams. The addition of T-bills reflects growing appetite among corporates for low-risk, short-duration instruments that can be traded efficiently and integrated with broader cash management strategies.

 

Diversification and hedging could be key in the second half of the year

Heading into the second half of the year, investors should consider a diversified portfolio that includes factors such as alternative investments as well as hedges, say asset allocation experts at Goldman Sachs.

“We are relatively neutral on risk going into the summer,” says Christian Mueller-Glissmann of Goldman Sachs Research. "There's a few catalysts we're worried about. There's the tariff deadline. There is [the potential of] French elections. There's obviously the Middle East conflict. I think the best approach is [to] build a well-diversified portfolio that can deal with a certain amount of shocks.”

The good news for investors interested in hedging, he adds, is that volatility has recently declined and risk appetites have picked up, making hedging relatively cheap once again.

Investors should also consider private assets as part of their diversification strategies, according to Goldman Sachs Asset Management's Alexandra Wilson-Elizondo. She adds that in some private markets outside the US, there is less competition, which could mean there are better opportunities to generate alpha. “There's different dynamics, whether it's relating to urbanisation and real estate and all of these different places where you can have really good underwriting… Diversification is really important regionally, but equally across both the public and the private spectrum.”

 

FourTwoThree platform targets SME climate data challenge

A new bank-backed platform, FourTwoThree, has launched to help large institutions and their SME partners measure and reduce carbon emissions, with a particular focus on Scope 3 data across supply chains. Developed with investment from NatWest Group, NAB and SC Ventures, the platform is designed to enable automated climate data sharing and assessment between banks, enterprises, and SMEs. It supports carbon footprint calculation using primary data, alongside access to decisioning frameworks that help SMEs identify commercially viable climate strategies.

FourTwoThree aims to unlock part of the estimated US$50 trillion transition finance opportunity required to decarbonise global supply chains. With Scope 3 emissions often accounting for over 70% of a company’s carbon footprint, improving data quality and collaboration between large organisations and smaller suppliers has become a priority.

The platform is built to integrate with existing banking infrastructure and meet institutional standards around risk, performance and security. It offers a two-way value exchange: SMEs gain automated tools and personalised guidance to support their climate transition, while banks and enterprises access more reliable data for reporting, risk assessment and competitive advantage.

FourTwoThree will also acquire PointSource Technologies, a venture incubated by SC Ventures, to expand its capabilities in assessing frameworks linked to sustainable financing and compliance. The deal is subject to merger control approval.

 

Deutsche Bank and Silverflow launch cloud-based card acquiring across Europe

Deutsche Bank has partnered with payment technology firm Silverflow to roll out a cloud-native card acquiring platform across Europe, aimed at improving speed, flexibility and transparency for merchants and corporate clients. The integration of Silverflow’s API-first infrastructure has enabled Deutsche Bank to onboard merchants faster than with legacy systems, while maintaining high authorisation rates even during peak transaction volumes.

The partnership combines Silverflow’s acquiring technology with Deutsche Bank’s optional payment service provider and cash management services, allowing clients to tailor transaction costs, settlement timing and risk settings to their specific needs.

Corporate banking clients also gain access to Silverflow’s chargeback API, automating dispute management and reducing customer complaints. Manual processes have been cut, operational overheads lowered, and reconciliation simplified through real-time data tools.

For Deutsche Bank, the collaboration enhances its ability to offer banking, treasury and acquiring services in one place, positioning it as a one-stop provider for digital payments. Feedback from the initial rollout has led to increased interest from merchants seeking integrated, technology-led solutions.

Looking ahead, the two firms plan to expand the platform’s capabilities with new analytics dashboards, predictive fraud controls and dynamic card network routing. These additions aim to improve authorisation rates, streamline financial closing processes and give merchants deeper insights into their payment flows.

 

SAP Taulia and PayMate partner to expand B2B payment options

SAP Taulia has partnered with PayMate to offer businesses across APAC and EMEA more flexible options for supplier payments, including virtual cards and bank transfers for both domestic and cross-border transactions. The integration enables users of SAP Taulia’s platform to access PayMate’s payment infrastructure, allowing suppliers to receive funds directly into their accounts without manual processing. This streamlines reconciliation, reduces administrative effort, and supports more secure, automated financial operations.

By adding virtual card functionality, the partnership allows businesses to leverage existing credit lines more effectively, freeing up working capital and improving cash flow management. The expanded payment suite aims to help companies optimise liquidity while enhancing supplier relationships through faster, more reliable settlement.

The collaboration also broadens SAP Taulia’s regional reach, extending its capabilities to businesses operating in countries such as Singapore, India, the UAE, South Africa and Australia. The combined offering responds to growing demand for integrated payment solutions that can support financial agility across complex, multi-country supply chains.

For PayMate, the partnership brings its infrastructure to a wider corporate user base through SAP Taulia’s established working capital platform. Clients gain enhanced control and visibility over their outgoing payments, with reduced reliance on manual intervention and increased protection against fraud.

 

HSBC launches shariah-compliant digital trade finance in Malaysia

HSBC Amanah has launched TradePay-i, a shariah-compliant digital trade finance solution aimed at improving liquidity and easing supplier payments for businesses in Malaysia. Designed to simplify working capital financing, the solution allows companies to draw down trade facilities and make direct supplier payments through a streamlined, digital process. Accessible via HSBCNet, the solution eliminates manual paperwork and complex documentation by enabling users to upload a single payment file to initiate funding.

The launch targets businesses navigating volatile trade conditions, offering just-in-time financing to meet supplier obligations while avoiding unnecessary administrative burden. HSBC said the product reflects growing demand for ethical and transparent Islamic finance solutions, particularly in a supportive regulatory environment that encourages innovation in shariah-compliant offerings.

By automating drawdown and payment processes, TradePay-i is intended to help businesses optimise cash flow, strengthen supplier relationships, and reduce financing uncertainty. It also supports faster execution and provides greater control over funding decisions, offering corporates a more agile approach to trade management.

HSBC TradePay-i combines digital infrastructure with shariah principles, offering an alternative to conventional interest-based financing. It is designed for Malaysian companies seeking cost-effective, compliant solutions to support growth while managing rising supply chain risks and market complexity.