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1、Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East AsiaB R I E F I N G P A P E RN O V E M B E R 2 0 2 3Images:Getty Images 2023 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any
2、means,including photocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a c
3、ollaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.ContentsShaping the Future of Cross-Border Fast Payment Systems:Revolutionizin
4、g Transactions in South-East Asia2Introduction 31.The rise of the cashless economy:fast payment systems 4 in South-East Asia2.Case study:The PromptPayPayNow cross-border 11 payments linkage between Thailand and Singapore3.Going from bilateral to regional cross-border connectivity 14 in ASEAN and bey
5、ond4.The way forward 16Appendix:References 17Contributors 18Endnotes 19IntroductionShaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East AsiaNovember 2023Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East As
6、ia3Financial services are undergoing a digital revolution.As economies become increasingly digital,consumers expect their financial interactions to keep pace,demanding seamless,secure and rapid payment solutions.The digital payments market is thus growing rapidly across countries,fuelled by the incr
7、easing adoption of contactless payments,e-wallets and e-commerce.In todays real-time digital economy,customers and businesses need access to payment systems that are fast,affordable,accessible and reliable.This briefing paper,written in collaboration with the Bank of Thailand,analyses the current fa
8、st payments landscape and the opportunities and challenges associated with the implementation of real-time cross-border payment connectivity.It highlights progress on the deployment of cross-border fast payment systems(FPS),using as a case study the PromptPayPayNow linkage between Thailand and Singa
9、pores payment systems.The case study presents the design and additional functionalities provided to users,offering valuable knowledge for stakeholders involved in future cross-border collaborations.The paper also covers upcoming regional initiatives aimed at expanding cross-border payment connectivi
10、ty across countries,such as the Association of Southeast Asian Nations(ASEAN)regional payment connectivity initiative and Project Nexus from the Bank for International Settlements(BIS).Shaped in collaboration with key stakeholders involved in implementing this new cross-border fast payments infrastr
11、ucture central banks,payment providers and participating banks the paper focuses on understanding the roadblocks to the broad adoption of cross-border payment system linkages and identifying lessons learned.This briefing paper is presented in the hope that it will foster collaboration and knowledge-
12、sharing among all stakeholders involved and accelerate the adoption of cross-border FPS across countries.The push towards seamless,secure and rapid payment solutions represents not just an economic shift but also a cultural bridge capable of bringing communities together through the empowering force
13、s of financial access and technology.The rise of the cashless economy:fast payment systems in South-East Asia%0%40%100%80%60%520102015MalaysiaSingaporeThailandViet NamMyanmarPhilippinesIndonesiaLao PDRCambodiaIndividuals using the Internet(%of population)Shaping the Future of C
14、ross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia4Over the past decade,ASEAN economies and societies have witnessed remarkable economic progress coupled with profound digital transformation,driven by technological change and a growing middle class.The gross domestic pr
15、oduct(GDP)of the 10 ASEAN economies now represents a combined GDP of$3.6 trillion as of 2022 equivalent to the worlds fourth largest economy.1 Despite the economic impact of the COVID-19 pandemic,ASEAN economies continue to be among the worlds fastest growing,with average GDP growth remaining robust
16、 at 5.6%in 2022.2 Looking ahead,despite growing global economic uncertainty,ASEAN countries are projected to reach 4.6%GDP growth in 2023.3 The domestic consumption of the regions growing and increasingly affluent middle class,combined with significant productivity,have fuelled economic growth prosp
17、ects locally.4 ASEAN countries have also witnessed a truly remarkable growth in internet penetration;this has trebled over the past decade across ASEANs 663 million population,5 from 24.6%of the population having access to the internet in 2012 people to 79.5%in 2021.6 As illustrated in Figure 1,whil
18、e Malaysia,Singapore and Thailand remain the most connected countries in the region,Indonesia,Lao Peoples Democratic Republic(Lao PDR),Cambodia,the Philippines and Myanmar have witnessed a sharp acceleration in their digitalization.There are now 527 million internet users in South-East Asia,7 with a
19、n estimated 40 million new users added every year since 2019.8 The pandemic helped accelerate the pace of digital adoption,as people shifted many aspects of their lives online,with an estimated 125,000 new users coming online every day.9The rise of internet usage across ASEAN countries since 1990FIG
20、URE 1Source:International Telecommunication Union(ITU)World Telecommunication/ICT indicators Database0060708090100SingaporeThailandViet NamIndonesiaLao PDRPercentage of population aged more than 15 years20021MalaysiaCambodiaPhilippinesMyanmar94332632425358
21、8044606262538574979Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia5Across ASEAN countries,the digital economy now represents 510%of gross GDP,and this figure is forecast to double by 2025 and reach$1 trillion by 2030.10 The digital e
22、conomy is not only an engine of economic growth but also a catalyst for job creation:it already indirectly supports close to 30 million jobs across the region and is a crucial enabler for many businesses.11 Online platforms have helped more than 20 million merchants and 6 million restaurants to grow
23、 their businesses online.12 The availability of smartphones and increased internet penetration have played pivotal roles in the widespread adoption of online banking services,mobile money and e-wallets.As illustrated in Figure 2,account ownership within financial institutions has also taken a leap f
24、orward across ASEAN countries over the past decade.Account ownership or access to mobile money is now higher than 60%in seven out of the nine countries covered by the World Bank Findex,compared with only two countries in 2011.The number of people holding a bank account or signing up with a mobile mo
25、ney provider in that time has grown from 3%to 60%in Cambodia,from 9%to 62%in Lao PDR and from 12%to 62%in Indonesia.Account ownership at a financial institution or with a mobile money service providerFIGURE 2There is also growing evidence that the COVID-19 pandemic accelerated the use of digital too
26、ls across those ASEAN countries that embraced digital transformation.As can be seen in Figure 3,a large majority of young people in ASEAN countries adopted digital tools for the first time during the pandemic,and for many of them this permanently changed the way they consume information,buy goods,us
27、e financial services or interact with their government.This survey,conducted by the World Economic Forum in collaboration with Sea Group and based on an analysis of more than 68,000 youths aged 1635 years old from six countries in the South-East Asian region,shows the extent to which the COVID-19 pa
28、ndemic accelerated the adoption of digital tools.13 According to the World Bank,more than 80 million adults in India made their first digital merchant payment after the start of the pandemic;in China,this number was more than 100 million.14Source:World Bank,Findex 2022 edition00Ranked by
29、usage increasePermanentTemporary%of respondentsSocial media 5136.214.828.816.230.211.822.817.219.418.622.811.223.110.919.813.215.711.39.213.89.58.55.410.64.98.15.67.42.96.1Online technology 45E-commerce buying 42Virtual meetings 40Video streaming 38E-banking 34Food delivery 34Video games 33E-wallets
30、 27Digital government 23E-commerce selling 18Enterprise resource planning(ERP)16Telemedicine 13Ride-sharing 13Travel apps 9Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia6Increase in the use of digital tools in ASEAN following the pandemicFIGUR
31、E 3TABLE 1Over the past decade,the evolution towards a cashless economy has been accelerated by the growing adoption of digital payment systems across the region.As a result,the value of gross digital payments across the six largest ASEAN economies reached$806 billion in 2022,up 14%year on year,and
32、is forecast to rise to close to$1.2 trillion by 2025.15 Furthermore,the use of e-wallets is also rapidly gaining traction across ASEAN countries.As illustrated by Table 1,half of the top 10 countries in the world in terms of e-wallet penetration are ASEAN countries (Thailand,Viet Nam,the Philippines
33、,Malaysia and Indonesia).16 Global e-wallet adoption rates by country:top 10 countries by adoption rates(2022)RankCountryMobile wallet adoption rates(%)1Thailand92%2Viet Nam91%3India90%4Hong Kong89%5The Philippines88%6Malaysia86%7China84%8Indonesia82%9Saudi Arabia80%10Taiwan78%Source:ACI Worldwide,P
34、rime Time for Real-Time Global Payments Report,March 2023 Note:Based on a survey conducted by ACI in Q1Q2 2022 among 49,751 consumers in 40 markets globally.Source:World Economic Forum and Sea Group,COVID-19 The True Test of ASEAN Youths Resilience and Adaptability:Impact of Social Distancing on ASE
35、AN Youth,ASEAN Youth Survey 2020 Edition,July 2020Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia7Evolution of payment systems across countries Beginning in the 1990s,most economies adopted real-time gross settlement(RTGS),which marked the begi
36、nning of improvements in wholesale payments:176 nations had RTGS or RTGS-equivalent systems in 2017 compared to fewer than 10 RTGS systems in 1990.17 As digital economies grow,quick and secure digital payments are becoming ubiquitous.By settling high-value payments continuously in real time,RTGS red
37、uces credit exposures between banks and enhances oversight;using RTGS is key for payment systems seeking to strengthen operations and harness infrastructure for future innovation.While RTGS facilitates real-time wholesale settlements between financial institutions,fast payment systems(FPS)allow inst
38、ant retail payments by individuals and businesses.FPS(often referred to as“instant payments”,“real-time payments”or“immediate payments”)offer the capacity for users to transfer money 24/7,365 days a year and provide the payee with instant or quasi-instant payment of funds;they use optimized messagin
39、g protocols,liquidity management mechanisms and integrated settlement infrastructure to achieve near-real-time clearing and settlement finality for credit transfers.This allows transactions to be completed through interbank settlement in under 30 seconds,accelerating fund availability.FPS expand rea
40、l-time capabilities to a broader range of high-volume,lower-value transactions between end users.Implementing FPS can yield numerous benefits for countries seeking to modernize and improve their payment infrastructures.18 The use of FPS can also reduce the costs associated with retail transactions f
41、or both merchants and consumers.More efficient clearing reduces overhead costs for payment service providers,and these savings can be passed to merchants in the form of lower payment acceptance fees and to consumers through lower service charges.19 This may encourage merchant adoption of digital pay
42、ments and increase consumers use of electronic alternatives to cash.According to recent research,the use of real-time payments globally grew 63%year on year,reaching close to$195 billion in transactions in 2022.20FPS allow for a smooth,seamless flow of funds between accounts at different banks and f
43、inancial service providers.This delivers a consistent,convenient customer experience regardless of where accounts are held.Rather than postponing settlement,a number of FPS are now using real-time settlement throughout all the entities involved.Other FPS provide real-time transactions for payers and
44、 merchants,but banks/non-banks will use net settlement to settle the transactions.Furthermore,FPS can also promote competition among payment service providers.21 They can also allow the introduction of new features and use cases such as QR code acceptance,payment APIs or alias-based addressing.22 QR
45、 code acceptance enables convenient digital payments by allowing customers simply to scan a code instead of entering payment details manually.Payment APIs facilitate easy integration with third-party applications to support digital commerce.Alias-based addressing simplifies peer-to-peer transfers by
46、 using aliases(such as phone numbers)rather than account numbers.As Table 2 shows,there are more than 70 live FPS across countries and regions.An increasing number of domestic FPS have already adopted or are also on the verge of adopting the ISO 20022 message format,increasing their potential intero
47、perability.23 The ISO 20022 standard specifies an extensible markup language(XML)-based financial messaging schema.It provides a standardized and structured representation of transactions and associated metadata across the transaction life cycle.24 ISO 20022 messages consolidate and rationalize form
48、ats by establishing a common vocabulary of financial terms and codified meanings.Adoption facilitates integration between systems by harmonizing messaging protocols.By strengthening operational resilience,lowering market fragmentation and removing single points of failure,the ISO 20022 standard expa
49、nds the potential for increased interoperability and harmonization among payment systems.25Table 2 Fast payment systems across countries RegionCountryReal-time payments methodStatusYearAsia Pacific and South-East AsiaAustralia New Payments Platform(NPP)Live2018Cambodia Real-Time Fund Transfer(RFT)Li
50、ve2019China IBPSLive2010Hong KongFaster Payment System(FPS)Live2018TABLE 2Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia8RegionCountryReal-time payments methodStatusYearIndiaIMPSLive2010UPILive2016Indonesia BI-FASTLive2021JapanZengin SystemLiv
51、e1973KazakhstanISMTPlanned2025MalaysiaDuitNowLive2018Interbank Funds Transfer(IBFT)Live2006MyanmarNo scheme in placeTBDNew ZealandNo scheme in placeTBDPhilippinesInstaPayLive2018SingaporeFASTLive2014PayNowLive2017South KoreaCD/ATMLive1988Electronic Banking System(EBS)Live2001Sri LankaCEFTS(LankPay)L
52、ive2015TaiwanFinancial XML Live2003Interbank ATM funds transfer systemLive1987ThailandPromptPayLive2016Viet NamNAPAS Quick Money Transfer ServiceLive2016EuropeAustriaSCT InstLive2017AzerbaijanIPSLive2020BelgiumSCT InstLive2019BulgariaBorica Instant PaymentsLive2021CroatiaNKSInstLive2020Czech Republi
53、cInstant PaymentLive2018DenmarkStraksclearingLive2014EstoniaSCT InstLive2014FinlandSiirtoLive2017SCT InstLive2018FranceSCT InstLive2018GermanySCT InstLive2017Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia9RegionCountryReal-time payments method
54、StatusYearGreeceIRISLive2017HungaryAzonnali Fizetsi Rendszer(AFR)Live2020IcelandCBILive2020IrelandSCT Inst(few banks only are offering)Live2020ItalySCT InstLive2017LatviaEKS ZibmaksajumsLive2017LithuaniaCENTROlinkLive2017LuxembourgBILnetLive2020NetherlandsSCT InstLive2017NorwayStraksbetalingerLive20
55、11VippsLive2015PolandExpress ElixirLive2012Blue CashLive2013RomaniaPlati InstantLive2005RussiaFPSLive2019SerbiaIPSLive2018SlovakiaNo scheme in placeTBDSloveniaFlikLive2020SpainSCT InstLive2017BizumLive2016SwedenBIRLive2012SwitzerlandTWINTLive2016TrkiyeRetail Payment System(RPS)Live2012FASTLive2021Un
56、ited KingdomFaster PaymentsLive2008UkraineIn progressTBDNorth AmericaCanadaInterac e-TransferLive2002United StatesRTP and ZelleLive2017FedNowLive2023RegionCountryReal-time payments methodStatusYearMiddle East and Africa BahrainFawri+Live2015EgyptIPNLive2022EthiopiaEATSLive2011GhanaGhIPSS Instant Pay
57、(GIP)Live2007IranNo scheme in placeTBDIsraelNo scheme in placeTBDMoroccoNo scheme in placeTBDNigeriaNIPLive2011OmanMPCSSLive2017PakistanRaastLive2021QatarQMPLive2020Saudi ArabiaSarieLive2021South AfricaRTCLive2006TanzaniaTanzania Instant Payment Systems(TIPS)Live2019United Arab EmiratesImmediate Pay
58、ment Instruction(IPI)Live2019Latin AmericaBrazilSITRAFLive2002ChileTEFLive2008ColombiaTransfiyaLive2019HondurasSIPLive2008MexicoSPEILive2004PeruImmediate Interbank TransfersLive2016UruguayACH Transferencias InmediatasLive2021Source:ACI Worldwide,Its Prime Time for Real-Time,March 2023Shaping the Fut
59、ure of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia10Case study:The PromptPayPayNow cross-border payments linkage between Thailand and Singapore2Singapore and Thailand,two of ASEANs economic powerhouses,have spearheaded the evolution of the regions cross-border p
60、ayment infrastructure by linking their local FPS,Singapores PayNow and Thailands PromptPay.This case study synthesizes insights from stakeholder interviews into high-level lessons that can inform similar initiatives elsewhere.Initiated in 2021,this first-of-its-kind project within ASEAN marked a maj
61、or milestone in the regions journey towards a cashless society.Thailand launched PromptPay in late 2016,leveraging the countrys high smartphone penetration.It enables real-time Thai baht(THB)transfers using proxies such as mobile phone numbers,national ID numbers,e-wallet IDs and corporate IDs inste
62、ad of bank account numbers.Singapore introduced PayNow in 2017 for instant Singapore dollar(SGD)transfers using mobile/National Registration Identity Card(NRIC)numbers or virtual payment addresses.By connecting these systems,the central banks aimed to extend domestic convenience to cross-border paym
63、ents within South-East Asia.After extensive planning,the PromptPayPayNow linkage went live in April 2021.The linkage uses domestic fast payment rails and proxies(the recipients mobile phone number)to send cross-border transfers,avoiding cumbersome account details.A sender is able to“look up”a mobile
64、 proxy as part of the PromptPayPayNow service in order to verify the name connected to that mobile proxy before starting a transfer.Using this function means erroneous transfers can be avoided,giving senders confidence that they will be sending funds to the right person.The linkage enables individua
65、ls to make real-time and low-cost transfers of up to SGD 1,000/THB 25,000 daily between Thailand and Singapore using just the recipients mobile number.26 As of mid-2022,the linkage was processing more than 65,000 cross-border transactions monthly,with transaction size averaging$150200 per transfer.2
66、7 The fixed cost per transaction is currently THB 150(+/-$4)or lower,depending on the banks promotions in Thailand and is currently free to use in Singapore,although it includes a small foreign exchange mark-up defined by the participating bank issuing the transfer.The transfers are complete within
67、minutes compared to days for traditional remittances.Before the establishment of the PromptPayPayNow linkage,senders had to pay up to 10%of the amount sent to transmit money between the two countries,and it might take several working days for the money to arrive.28This pioneering linkage provides a
68、blueprint for connecting FPS across borders.While not without challenges,PromptPayPayNow demonstrates how countries can collaborate to extend the benefits of instant domestic payments to the cross-border environment.11Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactio
69、ns in South-East AsiaShaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia12Lessons learned from the implementation of the PromptPayPayNow linkageThe PromptPayPayNow linkage represents an important milestone,proving the viability of connecting domest
70、ic FPS across borders.The project faced complexities,but,through structured collaboration,stakeholders in Thailand and Singapore successfully delivered a world-first linkage that meets customer needs for convenient,accessible and affordable cross-border payments.The different stakeholders involved i
71、n this project provided several lessons learned,which they believe could be valuable to other countries looking to implement similar cross-border linkages between their payment systems.They can be grouped into the following five key overarching categories:1.Governance:establishing robust governance
72、and project-management structuresThe project established clear governance and project-management structures upfront.A steering committee of senior central bank officials provided oversight and direction.Project-management offices in each country facilitated working groups covering business,technical
73、 and legal/regulatory issues.29 Domestic operators,settlement banks and commercial banks from both countries collaborated closely.Strong governance and structured project management enabled alignment across multiple stakeholders.2.Technical standards:allowing flexibility in technical standardsAllowi
74、ng flexibility in technical standards ensures adaptability to unforeseen challenges,promotes collaboration and facilitates the integration of evolving technologies to meet dynamic project needs.To streamline cross-border peer-to-peer(P2P)fund transfers,BCS and ITMX(the two countries systems operator
75、s)devised a gateway using ISO 20022 as the message benchmark.The solution facilitates message conversion for cross-border sections while maintaining domestic formats,and addresses the time discrepancy between PromptPay and PayNow.Ensuring flexibility in the implementation of the cross-border linkage
76、 was balanced with interoperability needs,which helped to smooth onboarding and minimized disruption across legacy infrastructure.3.Regulation:bridging operational differences Different countries have different laws and regulations;such operational differences are common and must be studied and reso
77、lved collaboratively.For example,the turnaround times differed between PromptPay and PayNow,which had to be addressed to avoid transaction failures.New,asynchronous messaging flows were implemented.Another example was the disparity in anti-money laundering/combating the financing of terrorism(AML/CF
78、T)screening between the countries:Thailand requires real-time screening to be conducted during the look-up stage,whereas Singapore is open to performing this at the payment stage.Although the domestic systems shared similarities,they had operational differences that needed careful reconciliation,inc
79、luding variations in the message formats and timing.Instead of trying to completely harmonize the approaches,a compromise was reached that considered the differing processes in both countries and respected each countrys approach and honoured their respective regulations.4.Testing:conducting extensiv
80、e testing and ensuring comparable methodologiesThe project allotted significant time for rigorous testing by operators and banks.This revealed unanticipated issues,such as subtly different data-field norms,which caused transactions to fail.While time-consuming,comprehensive testing ensured a smoothl
81、y functioning system.As well as providing sufficient testing resources,it was also crucial to ensure from the outset that the testing methodologies used by both parties were comparable.5.Collaboration:developing legal frameworks collaborativelyDeveloping mutually acceptable legal agreements between
82、parties in two jurisdictions was complex but essential for risk management and recourse.A novel multiparty structure was devised to handle issues such as governance,liability and dispute resolution.While demanding,this collaborative legal infrastructure provides the bedrock for sustainable operation
83、s.The roles of the Bank of Thailand and the Monetary Authority of Singapore were also highlighted as key stakeholders in overseeing the governance of this project.In cases where agreements could not be reached between the participating banks and payment service providers,these issues could be escala
84、ted to the central banks for resolution.RegulationGovernanceTestingCollaborationTechnicalstandardsShaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia13Lessons learned from the PromptPayPayNow linkageFIGURE 4The successful linkage between PromptPay
85、and PayNow provides a promising template for connecting domestic FPS across borders.This implementation demonstrates that with pragmatic technical accommodation,operational precision,extensive testing and legal collaboration,the complications of cross-border connectivity can be overcome.When countri
86、es exhibit willingness to bridge operational variations,establish mutually acceptable legal frameworks and orchestrate efforts across technical,operational and legal domains,linkages become feasible.Domestic fast payment convenience can be extended across borders while unlocking the game-changing be
87、nefits of international fast payment interoperability for consumers and businesses.The PromptPayPayNow linkage indicates an achievable path for replicating fast payment convenience regionally and globally.With vision and commitment to cross-border collaboration,countries can follow this blueprint to
88、 deliver the future of streamlined,instantaneous worldwide payments.Source:World Economic Forum14Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East AsiaGoing from bilateral to regional cross-border connectivity in ASEAN and beyondWhile bilateral linkag
89、es between domestic FPS in two countries can deliver significant benefits,this approach does not scale efficiently.Each new country linkage requires complex technical integration and legal negotiation between payment system operators and industry stakeholders.Bilateral initiatives such as the Prompt
90、PayPayNow linkage are viable for close trading partners,but many country pairings lack the transaction volumes to justify the investment required for a customized bilateral linkage.This limits the reach of fast payments regionally and globally.With the number of live FPS across countries growing qui
91、ckly,consideration must be given to the issues posed by scaling the number of bilateral connections among countries.Connecting just 60 countries bilaterally would require 1,770 integrations,30 and the number of connections required grows exponentially as more countries are added.31 Clearly,an altern
92、ative to individual bilateral linkages is needed to efficiently enable broad interoperability between a growing number of FPS worldwide.There are still significant challenges that will need to be overcome before the fragmented national payment systems and business models across ASEAN countries can b
93、e fully integrated.Domestic payment systems have adopted different technical standards,messaging formats and processing flows.Bridging these differences requires custom integrations for each connection.While many systems use ISO 20022 messaging,they are often customized in incompatible ways,and thes
94、e technical factors compound the complexity of bilateral linkages.32 Beyond technical factors,legal and regulatory disparities also need to be solved.Compliance requirements concerning areas such as AML/CFT screening differ,as do rules on sharing customer data.33 The legacy technical architecture of
95、 some of the partnering banks across countries can also constrain the development of new cross-border linkages.34 Furthermore,there are also commercial challenges that need to be settled among participating stakeholders,solving disparities in currency conversion and settlement mechanisms across coun
96、tries.3Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia15Project Nexus,developed by the Bank for International Settlements(BIS)Innovation Hub,provides one model for such regional interoperability.35 Multilateral connectivity models address the l
97、imitations of bilateral linkages by establishing common standards and a single integration point for domestic systems.Project Nexus offers a standardized way for payment system operators to link their domestic FPS and route cross-border transactions.By connecting to Nexus,systems gain reach to all o
98、ther participants.This avoids the need for custom bilateral integrations between each country pair,creating a common technical framework that facilitates the onboarding of new systems.Legal and regulatory complexities are also streamlined under a unified Nexus scheme.Project Nexus provides standard
99、template contracts and compliance documentation to drive consistency;it advocates regulatory convergence through identifying best practices and gaps;the project also fosters coordinated oversight between central banks and transparency between authorities to ease compliance burdens.In 2022,the Nexus
100、prototype demonstrated cross-border payments between the Eurosystems TIPS,Malaysias RPP and Singapores FAST systems.36 This proved the viability of the model.Building on this success,central banks in Indonesia,Malaysia,the Philippines,Singapore and Thailand plan to connect their FPS using the Nexus
101、approach.With a combined population across these five countries of 490 million,the initiative has great potential for improving regional payments.37 Domestic payment proxies such as mobile phone numbers will be valid across borders,providing a seamless user experience.While starting within ASEAN,the
102、 goal is an interconnected global network.Nexus aims to develop an advisory panel of central banks and system operators worldwide to guide this expansion.38Project Nexus highlights the potential of regional payment connectivity models to unlock the benefits of fast payments across the whole region a
103、nd demonstrates the viability of scalable regional models to interconnect domestic fast payments across countries.By tackling legal,regulatory,technical and commercial barriers,it can extend the reach of real-time payments across entire regions.The potential of Project Nexus highlights the power of
104、collaborative regional initiatives to unlock fast payments globally.Through shared infrastructure and unified frameworks,barriers to broad cross-border connectivity can be overcome.Recent efforts by central banks across ASEAN represent a first step on the path towards an integrated real-time payment
105、s ecosystem.Success will pave the way for an exciting vision of seamless,instant payments within South-East Asia and beyond,delivering major economic and social benefits through improved speed,enhanced access and reduced costs.16Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing
106、 Transactions in South-East AsiaThe way forward4South-East Asia stands on the cusp of a new era of financial integration powered by instant cross-border payment capabilities.This briefing paper highlights the tremendous progress already achieved in modernizing payment infrastructure across ASEAN and
107、 linking domestic FPS internationally.The successes already achieved,such as the PromptPayPayNow linkage,can provide valuable lessons for other countries looking to implement similar cross-border linkages.The paper aims to outline both the progress made to date and the work still to be done.Realizin
108、g this future depends on collective action from stakeholders across the payments ecosystem.By sustaining collaboration,aligning standards and investing in connectivity,the promise of integrated real-time payments across ASEAN can become a reality.ASEAN is well positioned to emerge as a global leader
109、 in developing cross-border payment connectivity,as highlighted by the BIS-led Project Nexus.With sustained commitment and publicprivate collaboration,seamless cross-border payments could become a reality in South-East Asia,serving as a model that shows how faster,more inclusive payment systems can
110、transform trade,commerce and financial access worldwide.This model can provide a useful reference and catalyst for constructive action among the diverse payment stakeholders that will shape the future of payments across South-East Asia and globally.Shaping the Future of Cross-Border Fast Payment Sys
111、tems:Revolutionizing Transactions in South-East Asia17Appendix:References ACI Worldwide/GlobalData,Its Prime Time for Real-Time,2023:https:/ Yearbook 2022,December 2022:https:/www.aseanstats.org/wp-content/uploads/2023/02/ASYB-2022_0223.pdf.Baker McKenzie,PayNowPromptPay/PromptPayPayNow Linkage Whit
112、e Paper,28 April 2022:https:/abs.org.sg/docs/library/PayNow-PromptPay_Linkage_White_Paper.pdf?sfvrsn=9#:text=In%20this%20white%20paper%2C%20we,their%20domestic%20fast%20payment%20systems.Bank for International Settlements(BIS),“Developments in Retail Fast Payments and Implications for RTGS Systems”,
113、14 December 2021:https:/www.bis.org/cpmi/publ/d201.htm.Bank for International Settlements(BIS)Innovation Hub,Project Nexus:Enabling Instant Cross-Border Payments,March 2023:https:/www.bis.org/publ/othp62.pdf.Bank of Thailand,“BISs Project Nexus Prototype Successfully Links Eurosystem,Malaysia,and Si
114、ngapore Payment Systems;Partners in Indonesia,Malaysia,the Philippines,Singapore and Thailand to Work Towards Wider Payment Connectivity”,23 March 2023:hhttps:/www.bot.or.th/content/dam/bot/documents/en/news-and-media/news/2023/n1466e.pdf.Bank of Thailand,“Thailands Experience on Cross-Border Paymen
115、ts:PromptPay PayNow”,March 2023.Google,Temasek and Bain,e-Conomy SEA 2022,May 2022:https:/ Labour Organization,Extension of Social Security to Workers in Informal Employment in the ASEAN Region,2019:https:/www.social-protection.org/gimi/RessourcePDF.action?id=55856.International Telecommunication Un
116、ion,“Two-Thirds of the Worlds Population Use the Internet,But 2.7 Billion People Remain Offline”:https:/www.itu.int/itu-d/reports/statistics/2022/11/24/ff22-internet-use/.Kell Jay Lim,“How to Close Southeast Asias Financial Inclusion Gap”,World Economic Forum,Davos Agenda 2022,7 February 2022:https:
117、/www.weforum.org/agenda/2022/02/closing-southeast-asia-s-financial-inclusion-gap/.Organisation for Economic Co-operation and Development,Economic Outlook for Southeast Asia,China and India,2023:https:/www.oecd.org/dev/asia-pacific/economic-outlook/Overview-Economic-Outlook-Southeast-Asia-China-India
118、.pdf.Statista,“Gross Domestic Product(GDP)of the ASEAN Countries from 2018 to 2028”,2022:https:/ Bank,Considerations and Lessons for the Development and Implementation of Fast Payment Systems,September 2021:https:/fastpayments.worldbank.org/sites/default/files/2021-11/Fast%20Payment%20Flagship_Final
119、_Nov%201.pdf.World Bank,Fast Payments Systems:Preliminary Analysis of Global Developments,2020:hhttps:/thedocs.worldbank.org/en/doc/8f85b06f02562c802e97d9ec9d413b0e-0350012021/original/Fast-Payment-Preview-April21.pdf.World Bank,The Global Findex Database 2021:https:/www.worldbank.org/en/publication
120、/globalfindex.World Bank,Implementation Considerations for Fast Payment Systems,June 2021:https:/documents1.worldbank.org/curated/en/5274535/pdf/Implementation-Considerations-for-Fast-Payment-Systems.pdf.World Economic Forum,ASEAN Digital Generation Report:Digital Financial Inclusion,6 De
121、cember 2022:https:/www.weforum.org/reports/asean-digital-generation-report-digital-financial-inclusion/.World Economic Forum,Defining and Measuring Payment Interoperability,April 2022:https:/www3.weforum.org/docs/WEF_Defining_and%20Measuring_Interoperability_2022.pdf.Shaping the Future of Cross-Bord
122、er Fast Payment Systems:Revolutionizing Transactions in South-East Asia18Contributors World Economic Forum Lead AuthorGuillaume Hingel Financial Innovation Lead,Centre for Financial and Monetary SystemsReviewersDrew Propson Head,Technology and Innovation in Financial Services,Centre for Financial an
123、d Monetary SystemsSandra Waliczek Blockchain and Digital Assets Lead,Centre for Financial and Monetary SystemsAcknowledgementsThe opinions expressed herein do not necessarily reflect the views of the individuals or organizations involved in the project or listed below.Thanks are due to the working g
124、roup and those who contributed their insights via interviews to this project.Bank of ThailandPariwat Kanithasen Deputy Director,Payment Systems and Financial Technology Policy DepartmentWinn Varootbangkul Assistant Director,Payment Systems and Financial Technology Policy DepartmentWorking Group Memb
125、ersAnt Group(Alipay)Carrie Suen Senior Advisor,International Public Policy and Government AffairsFOMO PayLouis Liu Founder&Chief Executive OfficerKasikornbankTawan Thammanichanon Head of International Trade Product ManagementChuentiwa Chuencharoensuk Retail Payment Product ManagementKrungThai Bank K
126、atevitu Thippayot Head of Cross Border BusinessNational ITMX(Operator of PromptPay)Ponlawat Popermhem Business Strategy&Product DevelopmentThe Thai Bankers Association(Payment System Office)Yos Kimsawatde Head of Payment System OfficeShaping the Future of Cross-Border Fast Payment Systems:Revolution
127、izing Transactions in South-East Asia19Endnotes1 Statista,“Gross Domestic Product(GDP)of the ASEAN Countries from 2018 to 2028”,2022:https:/ Organisation for Economic Co-operation and Development,Economic Outlook for Southeast Asia,China and India 2023:https:/www.oecd.org/dev/asia-pacific/economic-o
128、utlook/Overview-Economic-Outlook-Southeast-Asia-China-India.pdf.3 Ibid.4 Ibid.5 ASEAN,Statistical Yearbook 2022,December 2022:https:/www.aseanstats.org/wp-content/uploads/2023/02/ASYB-2022_0223.pdf.6 Ibid.7 Ibid.8 Google,Temasek and Bain,e-Conomy SEA 2022,May 2022:https:/ World Economic Forum,ASEAN
129、Digital Generation Report:Digital Financial Inclusion,6 December 2022:https:/www.weforum.org/reports/asean-digital-generation-report-digital-financial-inclusion/.10 Google,Temasek and Bain,e-Conomy SEA 2022,May 2022:https:/ Ibid.12 Ibid.13 World Economic Forum and Sea Group,COVID-19 The True Test of
130、 ASEAN Youths Resilience and Adaptability:Impact of Social Distancing on ASEAN Youth,ASEAN Youth Survey 2020 Edition,July 2020:https:/www3.weforum.org/docs/WEF_ASEAN_Youth_Survey_2020_Report.pdf.14 World Bank,“COVID-19 Drives Global Surge in Use of Digital Payments”,29 June 2022:https:/www.worldbank
131、.org/en/news/press-release/2022/06/29/covid-19-drives-global-surge-in-use-of-digital-payments.15 Google,Temasek and Bain,e-Conomy SEA 2022,May 2022:https:/ Ibid.17 World Bank,Fast Payments Systems:Preliminary Analysis of Global Developments,2020:https:/thedocs.worldbank.org/en/doc/8f85b06f02562c802e
132、97d9ec9d413b0e-0350012021/original/Fast-Payment-Preview-April21.pdf.18 World Bank,Implementation Considerations for Fast Payment Systems,June 2021:https:/documents1.worldbank.org/curated/en/5274535/pdf/Implementation-Considerations-for-Fast-Payment-Systems.pdf.19 Ibid.20 ACI Worldwide/Glo
133、balData,Its Prime Time for Real-Time,2023:https:/ World Bank,Implementation Considerations for Fast Payment Systems,June 2021:https:/documents1.worldbank.org/curated/en/5274535/pdf/Implementation-Considerations-for-Fast-Payment-Systems.pdf.22 Ibid.23 World Economic Forum,Defining and Meas
134、uring Payment Interoperability,March 2022:https:/www3.weforum.org/docs/WEF_Defining_and%20Measuring_Interoperability_2022.pdf.24 Ibid.25 Ibid.26 Ibid.27 Bank of Thailand,“Thailands Experience on Cross-Border Payments:PromptPayPayNow”,March 2023.28 Central Banking,“Initiative:BoT and MASs PromptPayPa
135、yNow Link”,May 2022:https:/ Baker McKenzie,PayNowPromptPay/PromptPayPayNow Linkage White Paper,28 April 2022:https:/abs.org.sg/docs/library/PayNow-PromptPay_Linkage_White_Paper.pdf?sfvrsn=9#:text=In%20this%20white%20paper%2C%20we,their%20domestic%20fast%20payment%20systems.30 Bank for International
136、Settlements(BIS)Innovation Hub,Project Nexus:Enabling Instant Cross-Border Payments,March 2023:https:/www.bis.org/publ/othp62.pdf.31 Ibid.32 World Bank,Considerations and Lessons for the Development and Implementation of Fast Payment Systems,September 2021:https:/fastpayments.worldbank.org/sites/def
137、ault/files/2021-11/Fast%20Payment%20Flagship_Final_Nov%201.pdf.Shaping the Future of Cross-Border Fast Payment Systems:Revolutionizing Transactions in South-East Asia2033 Ibid.34 Bank for International Settlements(BIS),Developments in Retail Fast Payments and Implications for RTGS Systems,December 2
138、021:https:/www.bis.org/cpmi/publ/d201.htm.35 Bank for International Settlements(BIS)Innovation Hub,Project Nexus:Enabling Instant Cross-Border Payments,March 2023:https:/www.bis.org/publ/othp62.pdf.36 Bank of Thailand,“BISs Project Nexus Prototype Successfully Links Eurosystem,Malaysia and Singapore
139、 Payment Systems;Partners in Indonesia,Malaysia,the Philippines,Singapore and Thailand to Work Towards Wider Payment Connectivity”,23 March 2023:https:/www.bot.or.th/content/dam/bot/documents/en/news-and-media/news/2023/n1466e.pdf.37 Bank for International Settlements(BIS)Innovation Hub,Project Nexu
140、s:Enabling Instant Cross-Border Payments,March 2023:https:/www.bis.org/publ/othp62.pdf.38 Ibid.World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.