Interlinking Fast Payment Systems for Cross-border Payments April 2024

Linking fast payment systems across countries is receiving significant attention among central banks, international organisations and market participants as a promising way to improve the cross-border payments experience. In light of these developments and Australia’s commitment to enhancing cross-border payments, the RBA recently collaborated with a number of Australian industry participants involved in cross-border payments to study the interlinking of fast payment systems.

This report, prepared by the RBA, finds that connecting fast payment systems has the potential to considerably improve the speed and transparency of cross-border payments, benefiting both end users and service providers. Crucial to realising these benefits are well-designed governance, scheme rules and payments processing capabilities, which help to manage risk and ensure a seamless cross-border payments experience. However, establishing an interlinking arrangement poses challenges, including dealing with differences in legal and regulatory frameworks across participating jurisdictions and agreeing on governance arrangements and scheme rules.