Report Highlights Benefits and Challenges of Interlinking Fast Payment Systems for Cross-border Payments

Summary:

The Reserve Bank of Australia (RBA) has released a report exploring the benefits, design choices, and challenges of linking fast payment systems across countries. The report finds that connecting fast payment systems can improve the speed and transparency of cross-border payments, benefiting both end users and service providers. However, establishing an interlinking arrangement poses challenges, including differences in legal and regulatory frameworks and agreeing on governance arrangements and scheme rules. The RBA collaborated with Australian industry participants to study the interlinking of fast payment systems and contributes to the international discussion on this topic.