Overview of Payment Addressing in Nexus

Nexus allows payments to be addressed using any details that are valid in the Recipient’s country. These could include:

• International Bank Account Numbers (IBAN) (where used)

• Account Identification (account numbers) alongside a Financial Institution Identification (such as BIC or a non-BIC Clearing System Member Id)

• Proxies such as mobile phone number, email address or company registration number.

Nexus maintains a record of which payment address types are available in each country and provides this information to PSPs through the GET /countries/{countryCode}/addressTypes API operation.

Nexus will not provide its own proxy service or proxy format; users cannot register with Nexus to create a global “Nexus ID’.

Nexus does not maintain its own directory of proxies and associated accounts.

Benefits of using proxies instead of account details

Proxies are the preferred way to address Nexus payments, as they are more user friendly and easier to enter on a mobile device. But Nexus will always support IBAN (where accepted) and Account Identifiers as well.

For Senders and Recipients of Nexus payments, the use of proxies improves the user experience:

• Easier to share details: It is usually easier for the Recipient to share (for example) a phone number or email address than either (a) a Financial Institution Identification and Account Identification, or (b) an International Bank Account Number (which can be 20-32 characters).

• Reduces sharing of sensitive data: A payment can be addressed to the Recipient without the Recipient having to share sensitive personal details, such as their home address, or reveal where they hold their accounts.

• Provides confirmation of payee: Proxy directories typically provide some way of confirming the identity of the payee, for example, by returning the real verified name of the account holder (as provided by the account holder’s PSP). This helps to give the Sender confidence that they are sending funds to the correct account, as well providing a defence against fraud.

Where proxy services are unavailable

Proxy directories are not available in all countries or payment communities. Whether or not a proxy service is available, Nexus still allows payments to be addressed using IBAN (where accepted) and/or Account Identifications.

A country that does not have a proxy directory domestically is still permitted to send Nexus payments using the proxies available in the Destination Country.