BNP Paribas China is using electronic payment firm Clear2Pay for the Core Payment System project that will connect the bank’s payment operation to the China National Advanced Payment System infrastructure for both high value and bulk payments. The project will ensure that BNP is integrated and connected with the local Chinese banking system.
Historically, the Chinese payment system suffered from a fragmented and inefficient regional-based infrastructure. In 2002 the Chinese authorities initiated CNAPS to streamline domestic payments and better facilitate international commerce. In this way CNAPS is similar to the Single Euro Payments Area in that it is attempting to reduce the complexity and also the number of switches.
Michel Akkermans, chairman and chief executive of Clear2Pay, said: “China is going through a series of payment reforms, a move away from a wide range of national schemes into fewer, more centralised clearing systems. Foreign banks operating in China need to be able to connect to local payment infrastructures such as CNAPS, while at the same time being able to reconcile with their own internal systems.”
Clear2Pay’s technology will help BNP Paribas China to have straight through processing for local currency transactions. The system will be used by all the bank’s entities starting with the Shanghai and Beijing branches.