Cross-border payments remain slow and costly despite advances in domestic real-time retail payment (RTRP) systems, however, new innovations are promising to overcome many of the hurdles facing multi-country payment systems. This report explores multi-country integration models and best practices.
Design decisions can become more complex and more critical in a multi-country context. In addition, decisions need to be made about new features, such as the integration model, settlement currency, and FX conversions.
Multi-country payments system initiatives, led by regional authorities or governments, generally fall into one of three conceptual models. Variations exist in design elements within each model:
- Centralized Clearing & Settlement – Single regional processing platform (e.g., Buna, SADC-TCIB).
- Hybrid Clearing Model – DFSPs choose multiple clearing options (e.g., SEPA SCT Inst).
- Decentralized National System Links – Bilateral payment linkages (e.g., BIS Nexus).
There are many promising innovations entering the market, including Mojaloop, SWIFT gpi, and Ripple, that could bring greater efficiency, reliability, and financial inclusion to global real-time payments. This report lays out ways to ensure that multi-country payments are for affordable, and scalable for all.