Regional realities How CIPS and SARIE are influencing payment strategies in ASEAN and MEA

Imagine you're conducting a business transaction in Riyadh, Saudi Arabia, where you need to transfer funds across borders. You'd likely rely on SARIE, the Saudi Arabian Real-Time Interbank Express system, designed to facilitate real-time payments within Saudi Arabia. SARIE is a key part of Saudi Arabia’s push towards modernizing its financial infrastructure, providing fast and secure domestic transactions.  

Now, consider a similar scenario: a Pakistani sender willing to make larger international payments, would typically use the SWIFT network, which is the global standard for secure financial messaging and international money transfers. In this case, the individual or business would initiate a bank transfer from their account in Pakistan to the recipient's bank account in Saudi Arabia. The payment would be processed through SWIFT, which facilitates secure cross-border transactions, with funds generally arriving within a few business days. The sender would need the recipient's SWIFT code, bank details, and sometimes an IBAN (International Bank Account Number). In contrast to this, if the business owner is purchasing goods from a supplier in China, he/she is more likely to make payment via CIPS. The business in Pakistan makes the payment through their local bank, which connects to the CIPS system. The funds are converted into Chinese yuan and sent directly to the recipient’s bank account in China, bypassing traditional SWIFT channels 

Payment strategies in different regions reflect a complex interaction of cultural practices, economic conditions, technological infrastructure, regulatory environments, and trust factors. As regions evolve economically and technologically, their payment methods continue to adapt, with mobile and digital payments becoming increasingly prominent in both developed and emerging markets. Understanding these regional differences is crucial for businesses and payment providers looking to expand their reach and adapt to local needs. 

Why do payment methods vary around the world? 

Several factors contribute to the varying payment methods across regions: 

1. Cultural Preferences: Different regions have unique cultural habits, such as cash dominance in Southeast Asia and mobile payments in China. 
2. Economic Development: Developed economies rely on digital payments like cards, while developing economies often use cash due to limited banking infrastructure. Trust in digital payments is higher in regions with stable financial systems, while mistrust may keep some regions reliant on cash. 
3. Banking Infrastructure: Advanced banking systems support card-based payments in developed countries, while mobile payments dominate in regions with limited banking access. 
4. Regulatory Standards: Strict regulations in regions like the EU promote secure digital payments, while emerging markets may have more flexible rules to encourage digital adoption. 
5. Technological Inclusion: Tech-savvy regions adopt advanced payment methods like contactless and cryptocurrency, while other areas may still use traditional systems like cheques. Younger, tech-savvy populations tend to favor digital payments, while older generations in some areas prefer cash or traditional methods. 
6. Government regulation and policies: Governments may impose capital controls, restricting the movement of money and influencing the use of local vs. international payment systems. These controls can make traditional payment methods like SWIFT less effective, while encouraging local alternatives or digital currencies to circumvent government-imposed restrictions. 

The role of CIPS and SPSF in shaping the future of finance 

As the rise of instant digital payments reshapes global finance, financial regulators and banks worldwide are now moving towards richer message standards (ISO 20022) to support faster, safer cross-border flows. In Southeast Asia and the Middle East/Africa (MEA), two major systems – China’s Cross‑border Interbank Payment System (CIPS) and Saudi Arabia’s emerging payment framework SARIE are at the center of this shift.  

In the following sections, you’ll explore what CIPS and SARIE are, how regional trade and regulatory pressures are driving their adoption. The article will further provide you with insights on what these trends mean for banks in ASEAN and KSA. 

1. China’s Cross-Border Payment Hub  

Launched in 2015 by the People’s Bank of China, CIPS is a global payment infrastructure for settling renminbi (RMB) transactions. It was created to replace fragmented networks and make RMB transfers smoother. CIPS is open to foreign financial institutions, which allows any qualified bank to directly access China’s domestic payment system for RMB transfers. In May 2025, it already had 174 direct participants and 1,509 indirect participants worldwide, covering over 120 countries and 4,900 institutions. As a wholesale payment system, CIPS supports both domestic and cross-border RMB clearing and settlement, which enables businesses and banks to fund China‑related trade and investment without going through costly correspondent chains. 

Key Features of CIPS: 

• CIPS adopted the ISO 20022 standard at launch and is updating its data guidelines to align with BIS/CPMI’s harmonized ISO 20022 requirements by 2027. This data-rich format boosts straight‑through processing and transparency. 
• CIPS connects 174 direct and 1,509 indirect participants. Its member banks span all major regions (over 1,100 from Asia outside China). Indirect participants can transact via direct ones, effectively linking more than 4,900 banks worldwide. 
• CIPS has integrated advanced identifiers (like legal‑entity identifiers or LEI) into its payments, which improves anti‑money‑laundering checks and reduces compliance costs for participants. 
   

2.Saudi Arabia’s Payment System Framework 

Saudi Arabia’s payment modernization – sometimes referred to as the Saudi Payment System Framework (SPSF) – is led by the Saudi Central Bank (SAMA) and driven by Vision 2030. The framework includes multiple initiatives to build faster, more inclusive infrastructure and reduce cash reliance.  

SARIE (RTGS): The Saudi Arabian Riyal Interbank Express (Sarie) is a real-time gross settlement system launched in 1997. It acts as the core settlement engine for large‑value interbank transfers and government. SARIE handles huge volumes and remains the backbone of the country’s payment infrastructure. 

Instant Payment System: Branded simply as “SARIE” in digital channels, Saudi’s instant payments service went live in 2021. It enables 24/7 real-time transfers for consumers and businesses, with transaction limits (e.g. up to SAR20,000) suitable for retail, P2P, and business payments. The system was built using the latest ISO 20022 messaging, meaning payments carry rich remittance data from the start. 

BUNA: Buna is a newer, region‑wide payment network launched in 2020 by the Arab Monetary Fund (in cooperation with the Saudi Payments Company). It is a real-time gross settlement platform for the Arab region, supporting multiple currencies (USD, EUR, SAR, EGP, JOD, AED) and over 110 participating banks. Buna was designed natively on ISO 20022, offering a modern channel for cross‑border transfers within the Middle East. It aims to cut reliance on slow correspondent links and is expanding corridors (with plans to link to African countries). 

Regional Impact in ASEAN and MEA  

Both ASEAN and MEA are witnessing rapid transformation in their payment ecosystems, driven by regional trade growth, regulatory mandates, and the shift toward real-time, ISO 20022-compliant infrastructures. 

In Southeast Asia, CIPS is central to this shift. Around 100 regional banks are now connected, and by 2024, China–ASEAN trade reached nearly 7 trillion RMB, with 28% settled in RMB. CIPS handled RMB 3.3 trillion in ASEAN-related cross-border payments in 2021 alone, a 50% increase from the previous year. This reflects a broader move away from the US dollar as ASEAN countries expand local currency settlements and sign RMB swap agreements with partners like Vietnam and Cambodia. 

In the Middle East and Africa, governments are equally focused on accelerating digital payments. Real-time systems now operate across all GCC states, with Oman, Kuwait, and Qatar launching platforms in 2023. Middle East processed 855 million instant transactions in 2024, 12% of all electronic transactions. The report further suggested more than half of the payments that took place in the region were electronic, accounting for over 95% of transaction value. National programs like Saudi Vision 2030 target a largely cashless society, with Saudi Arabia reporting 8 billion digital transactions worth USD 426 B in 2022 alone. 

The message is clear; participation in systems like CIPS, Sarie, and Buna is no longer optional. These infrastructures are redefining settlement models with faster, richer, and more integrated payments. Institutions that adapt early will strengthen compliance, cut costs, and capture the benefits of expanding regional trade corridors. 

Conclusion 

China’s CIPS and Saudi Arabia’s payment framework are reshaping the landscape of regional payments. In ASEAN, CIPS facilitates growing RMB trade and supports a broader de‑dollarization trend. In the Middle East, SAMA’s SPSF initiatives (from Sarie to Buna) are laying the groundwork for a more integrated, digital economy.  

For banks, this means payment modernization is no longer optional. Adhering to ISO 20022, updating compliance frameworks, and connecting to these systems is critical for staying relevant. Leaders who proactively align with CIPS, SPSF and related projects will gain a strategic edge, while those who delay risk being “excluded from payments networks” altogether. The regional realities are clear: in ASEAN and MEA, payment strategies will be defined by these new rails, and financial institutions must evolve accordingly to compete in this fast-moving environment. 

References 

Cross-border Interbank Payment System (CIPS). (n.d). CIPS Participants Announcement No. 109. Retrieved from https://www.cips.com.cn/en/2025-06/06/article_2025060616572215672.html 

Vietnam Plus. (2025). ASEAN, China promote cross-border payments. Retrieved from https://en.vietnamplus.vn/asean-china-promote-cross-border-payments-post318203.vnp 

CIPS welcomes release of BIS CPMI harmonised ISO 20022 data requirements for cross-border payments. (n.d). Retrieved from  https://www.cips.com.cn/en/2023-10/17/article_2023122305151170038.html 

Chinadaily.com (2025). ASEAN accelerates de-dollarization. Retrieved from https://www.chinadaily.com.cn/a/202507/16/WS6876fc5da31000e9a573c3f1.html 

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https://www.theasianbanker.com/updates-and-articles/buna-poised-to-transform-cross-border-payments-in-the-arab-region-and-beyond 

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Tanmeya Capital. (n.d). Instant Payments, Instant Shift: How Sarie’s 24/7 Model is Reshaping Consumer Banking. Retrieved from  

https://www.tanmeya.com.sa/article/instant-payments-instant-shift-how-saries-24-7-model-is-reshaping-consumer-banking 

IBM. (2021). Saudi Payments Launches Instant Payments System 'sarie' in Cooperation with IBM and Mastercard. Retrieved from https://newsroom.ibm.com/2021-04-21-Saudi-Payments-Launches-Instant-Payments-System-sarie-in-Cooperation-with-IBM-and-Mastercard 

Chinadaily.com (2022). RMB usage in ASEAN countries continues to grow. Retrieved from https://global.chinadaily.com.cn/a/202209/19/WS6327d641a310fd2b29e786b1.html 

CGTN. (2025). RCEP and China-ASEAN Free Trade Area: Unleashing full potential of regional economic integration. Retrieved from https://news.cgtn.com/news/2025-05-23/China-and-ASEAN-unleash-potential-of-regional-cooperation-with-FTAs-1DBIalFuRwI/p.html 

EMEA Finance. (2025). Real-time payments take off in the Middle East. Retrieved from https://www.emeafinance.com/live/actual/news/3286-real-time-payments-take-off-in-the-middle-east 

Arab News. (2023). Share of digital payments in Saudi Arabia hits 62%, says SAMA official. Retrieved from. 

 https://www.arabnews.com/node/2367251/business-economy