Press Relase: XMLdation launches market-first simulator solution for RT1 payments testing

Acting as a virtual banking partner, the self-service tool enables banks and payment service providers to carry out automated, configurable, end-to-end payments testing, optimising risk management and reducing costs

London, 12 June, 2026: XMLdation, a leading provider of payments testing solutions, has developed the Virtual Buddy Bank to support banks and payment service providers (PSPs) manage their payments testing more effectively. Acting like a partner bank, users can send payments to and from Buddy Bank at their convenience, with full transaction transparency and configurability of test cases. Importantly, Buddy Bank is directly integrated with the real-time payments scheme or infrastructure through a standard interface, enabling seamless connectivity.

As banks and PSPs join multiple rails to support global real-time payments needs, the ongoing end-to-end testing needed to manage risk and ensure that banks’ systems remain robust is becoming more complex and time consuming. Each real-time rail has regular industry updates and regulatory requirements.

“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.”

Real-time payments are becoming a regulatory standard, making effective testing all the more important. For instance, the EU Instant Payments Regulation now requires all banks and PSPs in the SEPA zone to be able to send and receive real-time payments via SCT Inst. It is therefore mandatory that they are connected to a rail that support this capability: RT1 and/or TIPS.

Buddy Bank has EBA Clearing approval to connect directly to RT1. It is fully aligned with the suite of pre-configured EBA Clearing RT1 test cases, enabling users to send and receive test payments and run all test cases needed for certification.

Buddy Bank is positioned to support testing for direct and indirect participants. XMLdation is currently extending the Virtual Buddy Bank and adding support for SWIFT CBPR+ and STEP2, OCT Inst and R2P, and plans to expand capabilities to other instant payment rails across the globe to support client needs.

- END -

About XMLdation

XMLdation has been delivering payments testing solutions in cloud to banks and market infrastructures since 2009. We are a team of payments and ISO 20022 experts with a strong focus on simplicity, ease of use and self-serve. Nordic thinking trusted across the globe.

More on Simo Rail Virtual Buddy Bank: https://www.xmldation.com/en/solutions/simo-rail

Read why Virtual Buddy Bank is your new best friend:  https://blog.xmldation.com/resources/virtual-buddy-bank-your-new-best-friend  

Media contacts:

anna.sharrock@expertcontentservices.com / +44 7811 758964