As I mentioned in a previous post usually there are two channels of sending payments to a Real Time Gross Settlement System:
- using a VPN network that connects all the participant financial institutions to the RTGS .
- using a 3rd party network like SWIFT that connects all the participant financial institutions to the RTGS
Bellow there some advantages of using V-Mode compared to Y-Copy mode
V-Mode allows omni-channel operation
Enables participants to send payment messages over their preferred payment channel (VPN or SWIFT) and move payment flows seamlessly from one channel to another.
V-Mode allows cross channel payments
A participant can send a payment message on any channel (VPN or SWIFT) and the receiver can receive the payment forward on his preferred channel (VPN or SWIFT) independent on how the original payment message was sent.
V-Mode is more inclusive
A participant can have only one channel available (VPN or SWIFT) but it is still able to send or receive payments to all the other participants.