XMLdation Launches 'Buddy Bank' Simulator to Revolutionize Real-Time Cross-Border Payments Testing

Quick Summary

XMLdation has launched Buddy Bank, a market-first payments testing simulator designed to automate end-to-end testing for real-time cross-border payments. The tool acts as a virtual partner bank, allowing financial institutions to validate transactions across multiple rails, ensuring compliance with EU Instant Payments Regulations and reducing operational risk.

How Does Buddy Bank Simplify Real-Time Cross-Border Payments Testing?

The payments testing simulator functions as a virtual banking partner, enabling banks and PSPs to send and receive fully configurable test payments at their convenience. By providing full transaction transparency, the platform removes the dependency on physical partner banks for end-to-end validation. This is critical as institutions face the evolving regulatory landscape, including the EU Instant Payments Regulation which mandates SCT Inst capabilities for all SEPA zone participants.

• Direct integration with RT1 and TIPS infrastructures.
• Automated test cycles to replace manual, time-consuming processes.
• Full configurability of test cases for bespoke banking environments.

What Results Has XMLdation Delivered for Global Banking Rails?

XMLdation addresses the massive scale of modern financial infrastructure. For a bank supporting 20 different rails, the system manages the 120 test cycles required annually that would otherwise be impossible to perform manually. The payments testing simulator is already aligned with EBA Clearing RT1 test cases, facilitating faster certification for both direct and indirect participants. Future updates will extend support to Swift CBPR+, STEP2, and R2P to cover the global real-time landscape.

• 120 annual cycles managed through automation for multi-rail banks.
• EBA Clearing approval for direct RT1 connectivity.
• Reduced operational costs by eliminating manual testing bottlenecks.

“The need for effective testing on an ongoing basis is undoubtedly growing. We have calculated, for example, that a bank supporting 20 different rails would need to undertake 120 test cycles every year. It is simply not practical to perform testing to that degree without automation,” says Tricia Balfe, CEO, XMLdation. “Being able to perform comprehensive end-to-end testing automatically, with far greater control, is an optimised means of driving efficiency and reducing risk and costs.”

FF NEWS TAKE:

This announcement definitely moves the needle for back-office banking efficiency. As the industry shifts toward mandatory instant payments, the bottleneck isn't just the technology—it's the validation and risk management. By providing a payments testing simulator that acts as a 'Buddy Bank,' XMLdation is solving a massive friction point in cross-border interoperability. Automation here isn't just a luxury; it's a regulatory necessity for survival in the SEPA zone.