On 29 April 2024, the Committee on Payments and Market Infrastructures (CPMI) published a Report on service level agreements for cross border payment arrangements, with recommendations and key features. The Report has been informed by a stocktake of existing cross-border arrangements and regular exchanges with practitioners.

The Report outlines the complexity of the cross border payments ecosystem, as it involves many different parties, financial infrastructures, use cases and underlying arrangements. As such, it highlights that different elements, rules and procedures (payment arrangements) need to be in place to enable cross border payments. If properly designed, payment arrangements can help meet the quantitative cross border payment targets on cost, speed, accessibility and transparency, endorsed by the G20 in 2021 (to be achieved by end of 2027).

Accordingly, the Report introduces recommendations, key features and guiding questions to inform entities involved in cross border payment arrangements when reviewing existing agreements, as well as changing or establishing new ones. The recommendations are deliberately kept at a high level. The key features provide a set of practical considerations and identify relevant/applicable aspects of those recommendations. The guiding questions set out for each recommendation are an additional tool for analysing payment arrangements.

The Report emphasises that applying the recommendations in a proportionate way can contribute to increased harmonisation of elements covered by these arrangements, without putting undue burden on new and smaller payment arrangements. It is also noted that the arrangements are not intended to impose additional standards or guidance on the application of the Principles for financial market infrastructures (PFMI) to payment arrangements, but they aim to share relevant insights and learnings from the PFMI with stakeholders involved in payment arrangements and relevant authorities.

The Report will inform the ongoing work of the CPMI on the governance and oversight of interlinking arrangements, specifically between fast payment systems. The CPMI will also feed the findings of this Report into its ongoing dialogue with industry stakeholders, such as the cross border payments interoperability and extension taskforce.