The Proxy Addressing System Service (PASS): Simplifying Cross-Border Payments with Interoperable Alias

Location Global

The United Nations Capital Development Fund (UNCDF) has proposed the Proxy Addressing System Service (PASS) as a key innovation to simplify cross-border payments. PASS utilizes an interoperable alias resolution service that allows simple identifiers, such as mobile numbers or email addresses, to retrieve the necessary payment routing details across multiple national systems. This approach reduces friction in transactions, promotes the adoption of digital remittances, and enhances payment accuracy and security, all while safeguarding users' personal data by using existing Proxy directories rather than creating new ones.

At UNCDF, we understand the challenges involved in making cross-border payments as simple and seamless as possible. Unlike sending an email—where only an address is required—cross-border payments demand extensive recipient information, from bank identification codes to physical addresses. For many, this process is complicated, time-consuming, and costly.

Drawing from the success of “Proxies”—unique identifiers like phone numbers or email addresses that are already facilitating billions of domestic transactions globally—we believe a similar approach can simplify cross-border payments. Proxies have transformed digital payments in countries like India and Brazil, where systems like Unified Payments Interface (UPI) and Pix have revolutionized how money moves. These identifiers are also widely used in the U.S. through services like PayPal and Venmo.

To bring the benefits of Proxies to cross-border payments, UNCDF is proposing the Proxy Addressing System Service (PASS). PASS aims to connect existing Proxy Lookup Service Operators (PLSOs) across the globe, enabling the secure and seamless exchange of payment information across borders. By reducing complexity and improving efficiency, PASS will help make remittances faster, safer, and more affordable for people everywhere.

Our goal at UNCDF is to enable financial systems that are accessible and inclusive, particularly for those who rely on remittances as a vital part of their financial well-being. We believe that PASS can be a key solution in addressing the challenges of cross-border payments, bringing greater security, ease, and cost-effectiveness to millions of consumers worldwide.