New reports lists potential benefits and challenges
The Reserve Bank of Australia (RBA) has recently published a report examining the potential benefits and challenges of connecting fast payment systems internationally.
The report highlighted the possibility of enhancing the efficiency and transparency of cross-border transactions, which could benefit both consumers and payment service providers, identifying critical elements such as robust governance, effective scheme rules, and advanced payment processing capabilities as essential for managing risks and ensuring smooth international payments.
However, it also noted significant hurdles, including reconciling differences in legal and regulatory frameworks and establishing agreed governance and operational rules among participating countries.
The RBA study has garnered considerable global interest as a means to improve international payment experiences.
The Reserve Bank of Australia today released a report analysing the benefits, design choices and challenges associated with linking fast payment systems across countries. Read the media release: https://t.co/uTPyjw9Eos
— Reserve Bank of Australia (@RBAInfo) April 23, 2024
In response to these developments and as part of its commitment to advancing cross-border payments, the RBA has engaged with various Australian industry stakeholders to explore the feasibility of interlinking fast payment systems.
The findings contribute to global discussions on this topic and call for further exploration of crucial design factors. The insights gained will also guide future deliberations in Australia regarding the potential international linking of its domestic fast payment system, the New Payments Platform (NPP).
“Cross-border payments are vital in an interconnected world,” said Brad Jones (pictured), Reserve Bank of Australia assistant governor (financial system). “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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
