PayCommerce, a cross-border payments network and banking consortium, has completed the first phase of testing for its cross-border instant payments system using digital ledger technology.

PayCommerce successfully conducted test payments between the US and India using its Federated Ledger, a blockchain-based technology. This is the first phase of testing before an expected roll-out to PayCommerce network members at the end of Q2 2017. Other regions, such as Mexico, the Gulf Cooperation Council region, and the UK, are planned in 2017. Introduction is planned for Singapore, Canada and the Philippines in 2018.

“The facilitation of instant payments into India heralds a new era in the democratization of cross-border payments. For the first time, payees will receive remittances in real-time, eliminating costly clearing and settlement procedures and reducing risk in payment acceptance,” says Max Narro, CEO of PayCommerce.

The Federated Ledger is a hybrid technology, using both distributed and centralized ledgers. Distributed ledger technology is the technology which underpins digital currencies such as Bitcoin, which uses a type of digital ledger called blockchain.

PayCommerce says that by using the technology, its customer base will benefit from lower transaction costs, and have access to instant real-time payments.