People's Bank of China's Shanghai head office launched cross-border renminbi payment services in the China (Shanghai) Free Trade Pilot Zone on Tuesday, a measure to support real economy development, facilitate cross-border trade and expand cross-border use of China's currency.

Five payment services providers signed contracts with Shanghai branches of five commercial banks on Tuesday morning. ChinaPay, one of the five payment services, initiated a cross-border renminbi payment transaction on site.

People's Bank of China's Shanghai head office has previously issued guidance to direct financial institutions to realize cross-border renminbi payment services.

Analysts said the launch of the service in Shanghai's free trade zone marks a milestone for development of the zone's functions under the facilitation of financial services.

Several banks, including Citi and Deutsche Bank, have already launched automated renminbi cross-border pooling solutions for their clients in the free trade zone, a move that will help multinational companies optimize their cash management and enhance capital efficiency.