Role of the PSP
This section describes how Payment Service Providers (PSPs) should prepare, send and receive Nexus payments.
There are three key roles that a financial institution can play in Nexus:
- Payment Service Provider (PSP), sending and receiving payments on behalf of customers. This term is used inclusively to refer to any financial institution that can send and receive instant payments through a domestic instant payment system. It may therefore include both banks and non-bank payment service providers.
- FX Provider (FXP), providing FX rates and FX conversion to PSPs
- Settlement Account Provider (SAP), providing FXPs with accounts which can send and receive payments through a specific Instant Payment System (IPS)
The roles of FXPs and SAPs are described in more detail in separate guides. Each role has a distinct registration and onboarding process and set of obligations in the Nexus scheme, as well as a distinct set of permissions and security controls when using the Nexus APIs and messages.
One entity could choose to play more than one role, subject to eligibility. For example:
- A PSP that is a participant in Nexus can also act as an FXP for certain corridors, subject to the eligibility requirements for FXPs. Such a PSP would be able to select their own quotes for the corridors for which they provide FX, and therefore provide FX conversion to their own payments. (See Annex: PSPs who are also FXPs)
- A PSP could also act as a Settlement Account Provider, providing accounts to FX Providers who are not themselves members of the domestic IPS. (See Role of Settlement Account Providers for further details.)