According to the Financial Stability Board (FSB), global financial authorities may fall short of achieving the G20’s 2027 goal for enhancing international payments efficiency. The initiative, which began in 2021, sought to speed up cross-border transactions and reduce their costs, aiming to limit average retail payment expenses to under 1% and ensure that most payments are credited within an hour.

Despite initial success in laying the groundwork and establishing the necessary infrastructure as part of the G20’s ‘Roadmap,’ recent FSB findings suggest that tangible benefits for end-users remain elusive. The latest report, presented prior to this month’s G20 meetings, revealed minimal global advancements since 2023.

Progress Lagging with Limited Impact

The FSB stated that while transaction velocities have increased in wholesale and remittance sectors, overall costs are still high. Transparency also lags behind expectations, particularly in regions such as sub-Saharan Africa, where remittance fees average 4%, significantly higher than the G20’s aspirational 1% threshold.

According to FSB officials, slow progress stems from the extensive international coordination needed and the complexity of upgrading payment infrastructure across different jurisdictions. They acknowledged that meeting the 2027 targets is unlikely, necessitating a discussion among G20 policymakers about whether to extend the current timeline or set new ones.

Improving the ‘plumbing’ of national payment systems—enabling continuous operation and adopting standardized messaging protocols—is seen as crucial for smoother cross-border transactions and better fraud prevention. The FSB further noted that while digital assets like stablecoins are being investigated for their potential in payments, their role in resolving cross-border inefficiencies remains uncertain, especially at the points where transactions originate and terminate.