The Central Bank of Iceland (CBI) has partnered with the technology infrastructure and service provider SIA to launch a new payment system.

CBI has gone live with a new real-time gross settlement system (RTGS) and instant payment platform.

Iceland’s all interbank payments are managed and processed by CBI. It processes up to one million transactions, at a maximum of 160,000 transactions per hour.

This payment volume is generated by over 365,000 people living in the country.

The new payment system developed by SIA and launched by CBI can manage up to five million transactions per day and process each transaction within 40 milliseconds.

It processes all kinds of payments such as bank-to-bank, P2P, P2B, and B2B transactions.

Central Bank of Iceland director of markets department Sturla Palsson said: “An efficient and secure payment system is one of the prerequisites for smooth, normal business transactions in a modern economy.

“We need to use the best available tools at all times, and we are delighted with the implementation of the new interbank payment system from SIA.”

SIA marketing and sales director Eugenio Tornaghi added: “SIA is continuously using its innovation capabilities to extend the opportunities for Central Institutions to target new frontiers of instant payments, interoperability with different market infrastructures and services, account to account payments and digital currencies.”

Currently, SIA operates in 50 countries, and through its subsidiaries in Austria, Croatia, Czech Republic, Germany, Greece, Hungary, Romania, Serbia, Slovakia, and South Africa.

It also has a presence in Belgium and the Netherlands, the UK and Poland.

Earlier this month, the Italian digital payments group enabled the new “Request to Pay” (R2P) service on EBA Clearing’s technology infrastructure for Banca Sella.