Global financial authorities are projected to miss the 2027 target set by the G20 nations to make international cross-border payments faster, cheaper, and more transparent. This assessment comes from the G20’s Financial Stability Board (FSB), which highlighted the challenges in overhauling infrastructure and coordinating numerous countries. Goals established in 2021 included reducing the average cost of a retail payment to a maximum of 1% and ensuring that 75% of wholesale and retail payments are credited within one hour.
According to an FSB progress report, initial roadmap work has been completed, but tangible improvements for end-users globally have not yet materialised. Key performance indicators show only a slight improvement since calculations began in 2023. While the speed of international wholesale and remittance payments has increased, costs remain high, and there has been insufficient progress in payment transparency. Person-to-person payments in sub-Saharan Africa are the highest globally, exceeding targeted costs at 4%, compared to 3.2% in 2023, against the G20 target of less than 1%.
FSB Deputy Secretary General Martin Moloney noted that the 2027 targets are unlikely to be met, prompting discussions on whether to extend the deadline or develop a new target. Moloney emphasised the need for countries’ payment systems to operate continuously and use standardised protocols to facilitate easier cross-border transactions and reduce fraud and sanctions infringements.
Additionally, the report addressed the emerging use of cryptocurrencies like Bitcoin and stablecoins for payments and money transfers. Moloney raised questions about the potential contribution of stablecoins to the global payment system, noting persistent challenges in payment processing and recipient access. He said he has not seen enough evidence to suggest they would solve those issues.
