CPMI reports to G20 on fast payment system interlinking and APIs provide insights and recommendations to enhance cross-border payments

• CPMI publishes two reports offering insights into enhancing cross-border payments by facilitating the interlinking and interoperability of payment systems.
• Report on the interlinking of fast payment systems aims to support private and public stakeholders when deciding on the governance and oversight of these arrangements.
• Report on greater harmonisation of the use of application programming interfaces (APIs) sets out 10 key recommendations.

The BIS Committee on Payments and Market Infrastructures (CPMI) today published two reports to the G20 that offer key insights and recommendations on the interlinking and interoperability of payment systems to enhance cross-border payments.

Linking fast payment systems across borders: governance and oversight 

Currently, fast payment systems (FPS) are designed and used mainly for domestic retail payments. Interlinking them across different jurisdictions could expand the end user experience of low-cost, fast, easy to access and transparent payments to the cross-border dimension. 

Opportunities to foster cross-border FPS interlinking have grown with the proliferation of FPS globally and with trends towards greater interoperability at the technical level. The growing use of application programming interfaces (APIs) and the adoption of the ISO 20022 financial messaging standard have opened up new possibilities to facilitate payment system interlinking. 

However, agreeing on workable governance and oversight arrangements is challenging due to the multi-jurisdictional, cross-border and/or cross-currency nature of these arrangements. 

Building on an earlier CPMI report that lays out the benefits and challenges of FPS interlinking and the role of APIs,¹ Linking fast payment systems across borders: governance and oversight discusses design choices and the risk implications of these arrangements, sets out the key decisions for governance and outlines recommendations for their oversight. 

Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit 

APIs are increasingly used throughout the global financial system for various payment functions, enhancing the efficiency of payment data exchange. However, API technical standards are currently fragmented, hindering the potential of APIs in cross-border payments and leading to increased time and expenses, as well as higher risks of errors. 

Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit presents 10 recommendations directed at a broad array of stakeholders. The recommendations were formulated in collaboration with industry through a CPMI-led panel of experts to promote greater harmonisation of APIs in cross-border payments. 

The recommendations do not propose a single universal API standard for cross-border payments, nor do they prescribe specific technologies or standards. Rather, they aim to steer API standards in a more harmonised direction by promoting facilitative processes, adoption of best practice design and international data standards, enhancements to the developer experience, and a focus on pre-validation APIs. 

The CPMI will continue its engagement with stakeholders to disseminate the findings of the two reports, facilitate their practical implementation and promote the interlinking of FPS for cross-border payments and harmonisation of APIs. 

¹ CPMI, Interlinking payment systems and the role of application programming interfaces: a framework for cross-border payments, report to the G20, July 2022.