Banking Circle launches POBO, COBO services
Banking Circle, the Luxembourg-based bank and payments infrastructure provider, has introduced Payments on Behalf of (POBO) and Collections on Behalf of (COBO) with the aim of providing virtual banking services to its business customers.
Under POBO and COBO, Banks and Payment Businesses would be able to send and receive cross-border payments on behalf of their customers, which usually happens in the name of banks or payment providers. In the process of introduction of POBO and COBO, the company says this would provide ease of reconciliation and also allow Payment businesses and Banks to comply with Wire Transfer Regulations (WTR).
Under this, funds can be also collected into Banking Circle’s virtual International Bank Account Number (IBAN) accounts in their clients and customers’ names. IBAN is used towards sending and receiving payments internationally.
This feature would be available through SWIFT and local clearing in 12 jurisdictions which includes UK and SEPA. The service available for Payments business would be in 24 currencies and to Banks in EUR and GBP. The connection will be done via API, UI and SWIFT.
Earlier this year, Banking Circle had secured a banking licence from the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.