Cross-border payments continue to face challenges such as low speed, high costs, limited access, and a lack of transparency. The G20 has called on the Financial Stability Board (FSB) to create a roadmap to improve them.
In response to this program, The Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) has requested that key players in the market join a panel to harmonize API protocols to enhance these international payments.
G20’s Goal For Improving Cross-Border Payments
Improving cross-border payments has been an important issue for many years. The G20 cross-border payments roadmap features a high-level plan that allows for flexibility, regardless of where countries stand and which starting points they are in their payment system arrangements. Also, based on how the goals are met, these milestones can be adapted year over year.
The roadmap also includes a commitment to a joint public and private sector vision in order to enhance these international payments. It features steps to organize oversight, supervisory, and regulatory frameworks. Furthermore, to support the requirements of the cross-border payment market, it aims for improvements in current payment infrastructures.
APIs Are a Priority
CPMI has invited important industry associations, financial infrastructures, and central banks to appoint API experts for this new panel. To qualify for a nomination, candidates must have strong technical knowledge and experience in developing APIs, open banking, and cross-border payments. They must also be familiar with API standardization initiatives at the jurisdictional or multilateral level.
APIs are equipped to facilitate faster and more efficient cross-border payments as they reduce manual intervention and support a more timely data exchange across the payment chain. Currently, APIs are being used for investigations, message repairs, compliance screening, and account validation.
The harmonization of APIs has become a priority due to its ability to offer more accessible, transparent, affordable, and faster cross-border payments.
The panel will have 20 members and will meet virtually on a quarterly basis.
