LankaPay says USD Online crosses Rs. 1.8bn mark

Sep 14, 2016 (LBO) – Payment network LankaPay says they will continue to expand services towards better financial inclusivity and is keen on expanding their core product offering.

“Customers can expect more along these lines of innovations in the near future,” Channa de Silva, LankaClear chief executive officer and general manager said.

“In addition to our primary objective of driving greater financial inclusivity, we are striving to help the country save much needed foreign exchange as well. Similar to our current portfolio of exciting and innovative services, we will continue to further improve the USD online offering to our members by bringing in innovative facets.

LankaPay said USD Online in its debut year saw the channeling of approximately 1.8 billion rupees worth of transactions.

USD Online essentially allows the movement of funds between banks the same day without having to go through NOSTRO accounts maintained with correspondent banks in the US.

Commenting on the progress of the service, LankaClear Chairman Anil Amarasuriya said USD Online has exceeded expectations.

“USD Online performed exceptionally well in its first year, which was beyond our projections for this period. The success of the service can be attributed to its innovative features that allowed it to be well received by the financial industry,” said Amarasuriya.

We are confident that volumes and value of transactions via this new channel would continue to move along a positive growth trajectory in the coming years.”

LankaPay launched USD Electronic Fund Transfers (EFT) in July 2015, enabling all member banks to offer same day US dollar transfers within the country.

The system that kicked off with six banks now has a pool of 10 financial entities. On-board isSampath Bank PLC, Seylan Bank PLC, ICICI Bank Ltd, Habib Bank Ltd, Cargills Bank Ltd, Amana Bank PLC, Hatton Nation Bank PLC, Commercial Bank of Ceylon PLC, Bank of Ceylon and Public Bank Berhad. With the launch of USD Online, customers of these banks were able to transact via other member bank branches island wide and affect same day fund transfer to any personal or corporate foreign currency account at a nominal fee.

The service allowed its users to reap a number of benefits including the reduction of the per transaction cost due to the elimination of costs incurred for NOSTRO and intermediary bank charges. In addition to paving the way to boost the Turn-Around-Time and prompting in-time zone settlement, USD Online further created greater efficiencies in small commercial settlements.

The company is jointly owned by the Central Bank of Sri Lanka and all Commercial Banks in the country. LankaClear’s product offerings include the Cheque Imaging And Truncation System (CITS), Common ATM Switch (CAS), same-day Electronic FundTransfer Service (SLIPS), real time Common Electronic Fund Transfer Switch (CEFTS), the only commercially operational Certification Authority (LankaSign)and Financial Sector Computer Security Incident Response Team (FINCSIRT) among several other critical payment solutions powered under the single brand name LankaPay.