Cross-border retail payment is a payment involving payors and payees located in different jurisdictions which could have specialised processes and different currencies. A seamless cross-border digital payments connectivity can lower cost of services, boost financial inclusion, and encourage the use of local currencies in the settlement of cross-border transaction; hence, it is becoming increasingly relevant in ASEAN to facilitate trade and to unlock the potential of crossborder e-commerce and digital economy, which is expected to reach USD 363 billion in 2025 and USD 1 trillion in 2030.
With the digital economy becoming a new driver for economic growth, ASEAN has been working to establish an interoperable crossborder real-time retail payment system (RT-RPS). In 2019, the ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) has endorsed ASEAN Payments Policy Framework for cross-border real time retail payments within ASEAN (hereafter: Framework). Along with the Bandar Seri Begawan Roadmap (BSBR) and the recent Memorandum of Understanding (MoU) on cooperation in Regional Payment Connectivity (RPC) among ASEAN Central Banks, this Framework sets the path towards a seamless cross-border payment system within the region.