Fees & revenue model
To make it attractive to participate in the Nexus Scheme involved actors will need to be able to recover their implementation and running costs. Nexus will therefore need to define a fee and revenue model that allows each actor in a payment to be compensated.
The Nexus Scheme does not restrict the actors in what fees they levy, but mandates that the fees (including FX rates) should always be transparent to the Sender (and Recipient, where applicable) and shared with the Sender before the payment is made. To support transparency, the Nexus Scheme would strongly discourage the practice of offering “free” transfers while hiding the fee in the exchange rate.
The table below provides an overview of the possible fee basis for each actor. Further work and engagement with industry would be needed to refine the model.
It is possible that actors in the Scheme combine several roles. This will not impact what fees can be levied, nor the transparency requirements. It may lead to certain fees not being charged (bank) internal or maybe being charged between (internal) departments or subsidiaries.
It is expected that processing costs and fees will decrease as the Scheme is adopted by more participants and competition increases.