Accenture has teamed up with SAP and R3 to develop a real-time gross settlement system (RTGS) to streamline payments between banks and customers.

The system will enable electronic fund transfers in real time and settlement on a one-to-one basis. It seeks to integrate distributed ledger technology (DLT)-based settlements with that of conventional systems to enable swift payments.

The partnership already designed a prototype that uses the SAP Payment Engine application to initiate and settle payments.

It integrates with R3’s Corda platform to connect with RTGS systems and leverages Accenture’s capabilities to enable peer-to-peer payments between banks using DLT. The technology can also carry out transfers between banks that have not adopted DLT.

The prototype uses currency tokens for end-to-end settlement, providing flexibility to banks in adopting new payment technologies while retaining conventional formats.

Accenture managing director and global blockchain technology lead John Velissarios said: “Because the current payment settlement infrastructure is highly complex and fragmented, RTGS systems that leverage DLT and cryptographically secure tokenised payments can help central banks improve efficiency and security.

“The RTGS prototype, designed in collaboration with SAP and R3, demonstrates the next stage of efficiency in payment systems and ultimately, paves the way to linking to tokenised-assets, like equities, to create an increasingly integrated and seamless financial services ecosystem.”

SAP IBU Banking global head Falk Rieker added: “As market participants accelerate their use and acceptance of digital payments, payment providers and banks need to adapt quickly and prepare for these new forms of payments.

“The RTGS platform is designed to enable banks and payment providers to easily adopt and integrate DLT-based payments on their existing platforms, helping banks to safeguard as well as augment the value of their investments.”