On June 5, 2013, a significant step was taken in direction of the harmonization of card funds in Europe. I had the privilege of executing the
very first reside transaction based mostly on the protocols and requirements that may change into
nexo requirements, in an Auchan retailer in Faches-Thumesnil, France, for a symbolic quantity of
€1.
This pioneering second, realized in partnership with Ingenico and
Crédit Mutuel-CIC, beneath the umbrella of the OSCar consortium, marked the primary operational implementation of a common card fee resolution constructed on
SEPA requirements.
–> First SEPA card transaction – June 5, 2013 – France, utilizing the French CB model
Â
In 2012, I joined the OSCar consortium because the
first service provider. Our purpose was clear: overcome the fragmentation that plagued worldwide retailers, who needed to preserve completely different fee options for every nation, resulting in operational complexity and important prices.
On the time, the shortage of harmonization throughout card schemes compelled retailers to adapt to
native protocols, leading to fragmented acceptance, advanced technical setups, and excessive upkeep prices. For giant retailers like
Auchan, a standardized, pan-European resolution promised main operational efficiencies.
The OSCar initiative, backed by key gamers corresponding to American Specific, Visa Europe, Mastercard Europe, GIE CB, Consorzio Bancomat, Ingenico, Verifone, Atos Worldline, and others, aimed to create this breakthrough by combining:
SEPA-FAST fee software (widespread terminal software) EPAS ISO 20022 Acquirer protocol (standardized POS-to-acquirer communication)
Â
Simply three months after the primary French transaction, the answer was efficiently replicated within the
Jumbo Paõ de Açucar retailer in Amoreiras, Lisbon.
This second reside pilot confirmed the cross-border capabilities of the answer —
no native adaptation was required. A single, unified fee software and protocol may now be deployed throughout completely different European international locations, according to the
SEPA Playing cards Framework aims set by the European Funds Council (EPC).
The pilot demonstrated:
No influence on buyer expertise: fee remained seamless at checkout.
Important simplification of the technical structure for retailers.
Interoperability throughout a number of home and worldwide card schemes with out cobadging constraints.
New alternatives for card issuers to increase their acceptance attain.
Â
–> SEPA card transaction – September 30, 2013 – Portugal, utilizing Visa and Mastercard manufacturers
Â
This milestone had profound implications for all stakeholders:
Stakeholder
Profit
Retailers
Simplified acceptance infrastructure, decrease prices, quicker innovation, cross-border attain
Banks / Acquirers
Standardized buying infrastructure, decreased integration prices, pan-European companies
Home Card Schemes
Prolonged acceptance with out dependency on worldwide manufacturers (e.g., no obligatory cobadging).
nexo requirements additionally assist home schemes to speed up the deployment of latest functionalities, because of the native integration of options already out there internationally. For instance,
contactless acceptance and PIN On-line have been supported in nexo protocols because the starting, whereas some international locations took over 10 years to roll them out.
Worldwide Schemes
Alternative to simplify multi-country deployment, foster open competitors
Answer Suppliers
Skill to supply standardized, scalable, SEPA-compliant options.
Diminished growth and upkeep prices, simpler multi-country deployments. A single resolution deployable
wherever, for everybody.
Customers
Quicker, constant, and safe fee experiences throughout Europe
Â
The open, common, and standardized strategy additionally allowed retailers and acquirers to anticipate regulatory evolutions, notably round interchange charge rules,
model alternative obligations, and the broader European card funds harmonization agenda.
Specifically, model alternative — mandated beneath PSD2 and its Regulatory Technical Requirements (RTS) — is natively supported by nexo protocols.
Retailers and customers can choose their most popular fee model on co-badged playing cards. nexo integrates and configures model choice flows in full compliance with regulatory obligations and with tips from the
European Funds Stakeholders Group (EPSG), as specified within the SEPA Playing cards Standardisation Quantity (Ebook).
Moreover, model alternative isn’t solely a European requirement: nexo requirements allow retailers globally to deal with comparable wants wherever model choice is anticipated or mandated.
Â
Following these first pilots, the initiative developed quickly:
EPASOrg transitioned to change into nexo requirements in 2014.
The preliminary protocols have been refined, expanded, and formalized right into a globally acknowledged suite of ISO 20022-based requirements.
nexo protocols have since been adopted by main gamers throughout Europe and past — not just for card funds but additionally supporting
cell and QR Code-based funds. They’re now evolving to include
Prompt Funds, and can seemingly transfer to combine the
Digital Euro sooner or later.
Â
Key Milestones:
Yr
Evolution
2013
First reside transaction (France), Cross-border validation (Portugal)
2014
Formal launch of nexo requirements
2016
Publication of nexo Retailer Protocol for POS-to-ECR communication based mostly on ISO20022
2018
Elevated adoption in main fee infrastructures
2021
nexo requirements started exploratory work on cell acceptance and SoftPOS integration.
2022
Launch of nexo QR Code initiatives for dynamic merchant-presented QR acceptance
2024
Extension towards Prompt Fee use circumstances
2025
Preparatory examine on Digital Euro
nexo requirements now utilized by main retailers, acquirers, and resolution suppliers globally
Â
nexo requirements protocols are actually referenced in European regulatory frameworks and acknowledged by main fee organizations, reinforcing their place as a worldwide customary for card and fee acceptance interoperability.
Â
As we speak, nexo requirements is a longtime, open,
versatile, and scalable framework. The requirements are utilized in various environments, from conventional
POS to SoftPOS and e-commerce acceptance. Initiatives are additionally exploring
Prompt Fee use circumstances based mostly on nexo frameworks. It helps:
Interoperability throughout a number of fee sorts and acceptance environments — together with in-store, e-commerce, SoftPOS, playing cards, cell, and QR codes.
Work is actively underway to combine Prompt Funds use circumstances.
Discussions are additionally progressing towards the adoption of nexo requirements for the
future Digital Euro, already acknowledged by the European Central Financial institution (ECB) as a key technical framework.Future-proofing with ISO 20022 compliance, worldwide migration to this contemporary construction offering flexibility for brand spanking new and future companies (playing cards, Prompt Fee, CBDC, e-Invoicing, …).
Innovation by means of standardized, open APIs and cloud-native architectures (in progress)
World attain with deployments in Europe, Africa, Americas, Center East, Australia and Asia
Â
By offering a standard language for the business, nexo requirements empowers all gamers — retailers, banks, fee schemes, and expertise suppliers — to construct a
extra related, environment friendly, and safe funds ecosystem.
Â
Twelve years on, the journey continues — driving funds towards a extra open, interoperable, and progressive world.
Â
What began with a symbolic €1 transaction has grown into a worldwide motion shaping
the way forward for harmonized, safe, and progressive funds worldwide.
Â
