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Onboarding PSPs, FXPs, SAPs
The IPSO can then start to onboard its own members onto Nexus. The scheme adherence process differs depending on the role an IPS Member wishes to play:
- Payment Service Providers (PSPs) – in Nexus the term “PSP” is used inclusively to refer to all banks or non-bank payment service provides which are eligible to be members of the IPS and to initiate and receive payments. Nexus does not set domestic eligibility requirements, so if non-bank PSPs are permitted to be members of a specific IPS, those non-bank PSPs are also eligible to join the Nexus Scheme.
- PSPs adhere to the Nexus scheme indirectly, by signing an addendum to their existing adherence agreement with the IPS’s domestic payment scheme. This addendum should confirm that the PSP agrees to abide by the additional obligations upon PSPs who send and receive cross-border payments through Nexus. These obligations are defined in the Nexus Scheme Rulebook.
- The signing of this addendum must be managed by the IPSO.
- Settlement Account Providers (SAPs) adhere to the Nexus scheme directly. An entity must be an IPS Member (and therefore a PSP) before it can start acting as a SAP in Nexus. Therefore a SAP must sign:
- The addendum to the IPS’s domestic scheme, relating to its responsibilities as a PSP sending and receiving payments on behalf of its customers. This must be managed by the IPSO.
- The Nexus Scheme adherence agreement, relating to its additional responsibilities as an SAP. This will be managed by the Nexus Scheme Organisation
- FXPs adhere to the Nexus scheme directly. An FXP may be a member of an IPS, in which case they can act as SAP to themselves. If the FXP is not a member of the IPS, the FXP can open accounts with SAPs through which they can send and receive payments via that IPS. FXPs therefore have a range of responsibilities outside payment processing, and so adhere directly to the Nexus scheme.
- If an FXP is a member of an IPS, the FXP must sign that IPS’s addendum to become a PSP that participates in Nexus
- If an FXP is not a member of any IPS, it will only interact with the Nexus Scheme Organisation to sign the Nexus Scheme adherence agreement.
- An FXP can connect to the Nexus Gateway that is most convenient.