The Business Payments Coalition (BPC) with support from the Federal Reserve, has launched an E-remittance Exchange Pilot. Through this pilot program, the payments industry is coming together to test an electronic delivery network that will enable all kinds of businesses to exchange electronic remittance (e-remittance) information.
Pilot participants are using an exchange framework ecosystem to send and receive e-remittance information – in other words, details that describe what is being paid. An exchange framework is a virtual electronic delivery network based on a set of technical standards and policies that allows businesses to securely share electronic supply chain documents with one another.
This pilot builds on the success of the BPC’s recent Remittance Delivery Work Group validation phase, where the work group successfully demonstrated the operational feasibility of an exchange framework to deliver e-remittance information.
The work effort consists of two participation options: a testing group of both service provider participants and business participants, and a market adoption planning committee. Organizations in the testing group are exchanging remittance information via the exchange framework by acting as either an access point or business participant. The market planning committee is helping to develop industry adoption strategies and review and refine remittance data requirements that build on the X9 ISO® 20022 Remittance Content Market Guide.
This pilot phase, which officially kicked off in September 2023 and will run through mid-2024, is the final step before market adoption of an exchange framework for e-remittance information, supporting all electronic payment methods.
“The E-remittance Exchange Pilot marks an exciting step forward for the payments ecosystem, and we’re encouraged by the strong interest we’ve received from industry experts. Over the coming months, the work of the E-remittance Exchange Pilot will be a catalyst toward straight-through processing and more efficient B2B payments.”
Kassi Quimby, senior vice president, payments improvement
Federal Reserve Financial Services
The work group includes industry leaders, qualified service providers and business participants from across the payments industry. View current E-remittance Exchange Pilot participants (Off-site).
The Fed and BPC will continue to provide updates on this innovative work, including progress toward more streamlined, modern B2B payments processes. To stay informed of further progress, join the FedPayments Improvement Community (select “E-invoicing” and “Electronic Payments and Remittance” under the interest preferences) and visit the BPC website (Off-site). Follow FedPayments Improvement on LinkedIn (Off-site) and Twitter (Off-site) for the latest news and perspectives.
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