China International Payment Service Co., Ltd. (CIPS) is a corporate entity approved by the People’s Bank of China (PBOC) to operate the RMB cross-border payment system. It operates under the supervision and guidance of the PBOC.

CIPS was officially established on July 31, 2015, in Huangpu District, Shanghai, with its inaugural meeting and unveiling ceremony held on September 8 of the same year. Since its establishment, CIPS has been committed to market-oriented development strategies and actively responding to the needs of its participants. It continuously enhances its product functionalities, optimizes system services, expands participant coverage, and plays a crucial role as the primary channel for RMB cross-border payments. As of the end of 2018, CIPS had 31 direct participants and 818 indirect participants, with the number of indirect participants increasing by 20.83% compared to 2017. CIPS serves participants from 89 countries and regions across six continents. The establishment and operation of CIPS mark a significant milestone in the development of China’s financial market infrastructures, representing substantial progress towards a modern payment system that integrates domestic and international payments. As an important financial infrastructure, CIPS complies with international regulatory requirements, including the Principles for Financial Market Infrastructures (PFMIs). It plays a vital role in promoting the internationalization of the RMB and serves as a crucial support mechanism in that regard.

Main business:

CIPS provides a range of services including RMB cross-border payment and settlement, data processing, and IT services to financial institutions. In its initial phase, CIPS (Phase I) supports cross-border trade settlements in goods and services, cross-border direct investment, cross-border financing, and cross-border personal remittances. The primary business functions of CIPS (Phase II) encompass the following: 1）Real-time Gross Remittance to Customers; 2) Remittance to Financial Institutions; 3) Regular Net Remittance to Bulk Customers; 4) Delivery Versus Payment (DVP) in the Financial Market; 5) Payment Versus Payment (PVP) for RMB and Foreign Currency; and 6) Central Counterparty (CCP) Settlement. Building upon the real-time gross settlement capabilities of CIPS (Phase I), CIPS (Phase II) has developed an additional regular net settlement mechanism.