by Codruta Boar, Stijn Claessens, Anneke Kosse, Ross Leckow and Tara Rice
Interoperability among payment systems – as the foundation for enhancing cross-border payments – requires technical, semantic and business system compatibility so that end users can seamlessly transact with each other across systems. Public and private sector options in pursuing cross-border payment system interoperability can be illustrated using four stylised models, ordered in increasing complexity and cost but also greater efficiency – a single access point, bilateral link, hub and spoke or a common platform. The BIS Innovation Hub is putting theory into practice with several innovative projects to foster interoperability across the four stylised models. An ambitious, multi-year G20 programme to enhance cross-border payments is under way.