Cross-Border Payment Targets for 2027 in Jeopardy: FSB Report

The G20's Financial Stability Board has announced that the ambitious 2027 target to streamline international cross-border payments is facing significant challenges. The objectives, established in 2021, aimed to cut the cost of retail payments to less than 1% and ensure 75% of payments are cleared within an hour.

Despite completing much of the initial groundwork, a progress report warns that these goals are unlikely to be achieved on time, owing to the vast number of countries involved and existing infrastructure roadblocks. Deputy Secretary General Martin Moloney highlighted these issues and called for a thorough debate among G20 leaders.

The report reveals that although there has been some improvement in payment speeds, costs remain high, especially in sub-Saharan Africa. As alternatives like cryptocurrencies emerge, their impact on solving payment hurdles remains uncertain, adding complexity to future global payment strategies.

(With inputs from agencies.)