Powering Payments: The Role of Technology in ASEAN's Regional Payment Connectivity Initiative

Technological innovation has played a pivotal role in enhancing regional payment connectivity. Specifically, technological advancements in cross-border transaction system have improved operational efficiency, while enhancing security, transparency, and trust across diverse financial networks. These developments have been central to the establishment of the ASEAN Regional Payment Connectivity (RPC), paving the way for greater financial inclusion and economic development in the region. Although regulatory and governance hurdles remain, they can be addressed through coordinated efforts that integrate sound policy framework and innovative technology.

This study examines the role of technological advancements in driving the progress and recent expansion of the RPC. It focuses on key initiatives underpinning its development and benchmarks them against similar cross-border payment initiatives worldwide. Through this comparative analysis, the study highlights both the strengths and limitations of innovative technologies in addressing existing challenges, improving payment systems and identifying potential areas for further enhancement. The study also aims to provide recommendations to strengthen and refine the RPC moving forward.