Framework for Interlinking Instant Payment Systems

This white paper presents a framework for the interlinking of instant payment systems (IPSs), outlining foundational principles and supporting pillars essential for developing linked arrangements. It emphasizes the importance of addressing interoperability barriers that may hinder the potential of IPS links to enhance cross-border payment efficiency, as highlighted in the G20 Roadmap for Enhancing Cross-border Payments. The document identifies four foundational principles: alignment of laws and regulatory frameworks, appropriate supervision and oversight arrangements, technical interoperability, and agreement on strategic goals. Additionally, it details five supporting pillars that facilitate the transition from concept to implementation, focusing on governance, commercial, and technical models. The paper stresses the need for stakeholder participation and the consideration of diverse jurisdictional requirements to promote the adoption and scalability of IPS links. It also discusses the complexities involved in aligning technical, regulatory, and legal standards necessary for successful multilateral IPS arrangements.