The RBA has unveiled a comprehensive report examining the possibilities and challenges of interlinking fast payment systems across borders.
This report delves into the potential benefits, design intricacies, and hurdles associated with connecting fast payment systems globally.
According to the findings, the interconnection of fast payment systems holds the promise of significantly enhancing the speed and transparency of cross-border transactions, benefiting both end users and service providers alike.
Key to realising these advantages are well-structured governance frameworks, scheme rules, and efficient payments processing capabilities. These elements play a pivotal role in managing risks and ensuring a seamless cross-border payments experience.
However, establishing an interlinking arrangement presents its own set of challenges. These include navigating variations in legal and regulatory frameworks across participating jurisdictions, as well as reaching consensus on governance arrangements and scheme rules.
The initiative to link national fast payment systems has garnered substantial international attention as a viable avenue for enhancing the cross-border payments landscape. Given this momentum and Australia’s commitment to bolstering cross-border payments, the RBA has recently collaborated with several Australian industry players involved in such transactions to explore the interlinking of fast payment systems.
The report contributes valuable insights to the global discourse on this subject and advocates for further examination of critical design considerations. Additionally, the findings will inform future deliberations in Australia regarding the potential integration of the domestic fast payment system, the New Payments Platform (NPP), with fast payment systems in other countries.
“Cross-border payments are vital in an interconnected world. Further efforts are needed to make them faster, cheaper and more transparent. This study marks an important step toward understanding the potential for linking fast payment systems to drive improvements in these areas.
“The RBA will continue to engage with industry, public sector agencies and international stakeholders to explore this and other avenues for the Australian financial system to deliver a better cross-border payments experience,” said Brad Jones, Assistant Governor (Financial System) at the RBA.
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