Monday, 13 October 2025
The Financial Stability Board (FSB) has released its 2025 Consolidated Progress Report on the G20 Roadmap for Enhancing Cross-Border Payments, showing that although many regulatory and technical milestones have been achieved, practical improvements in cost, speed, transparency, and access remain limited.
The G20 initiative, first launched in 2020, set an ambitious goal to make international payments faster, cheaper, and more transparent by 2027. Five years later, the FSB’s assessment suggests that while the global policy framework is largely in place, real-world impact for consumers and businesses has been modest.
The report highlights notable advances, including efforts by the Financial Action Task Force (FATF) to harmonise anti–money laundering standards and the expansion of ISO 20022 messaging protocols across key payment systems. The Committee on Payments and Market Infrastructures (CPMI) also coordinated measures to extend RTGS system operating hours and reduce cross-border frictions between banks and non-bank payment providers.
However, the FSB notes that the average cost of sending remittances still exceeds the United Nations’ target of 3 percent per transaction. Retail remittance corridors in Africa and South Asia remain among the most expensive, while in many low-income countries access to fast and affordable digital payment options is still limited.
The report attributes the slow progress to inconsistent national regulations, fragmented capital control frameworks, and the limited reach of interoperable payment infrastructure. “Much of the design work is done — implementation now lags behind,” the FSB stated.
Regional Perspectives
In Europe, the push toward real-time payments and harmonisation of financial messaging standards has placed the region among the global leaders in payment system integration. The EU’s Instant Payments Regulation, coupled with the Single Euro Payments Area (SEPA), continues to expand coverage, although cross-border adoption beyond the eurozone remains uneven.
In Asia, rapid advances are being made through regional connectivity projects. Initiatives such as Project Nexus, led by the Bank for International Settlements (BIS) Innovation Hub, are linking national instant payment systems across ASEAN countries. Singapore, Thailand, and Malaysia are already operational under this model, with Japan and India expected to join by 2026.
In Africa, progress has been slower but promising. The Pan-African Payment and Settlement System (PAPSS) — launched under the African Continental Free Trade Area (AfCFTA) — is facilitating cross-border trade in local currencies, reducing reliance on the US dollar. However, inconsistent regulatory environments and weak infrastructure continue to hinder scale.
The Americas present a mixed picture. While the US and Canada have advanced digital clearing systems, cross-border transactions between North and South America remain costly. Latin American countries such as Brazil, through its PIX instant payment system, are now exploring bilateral connections with Mexico and the Caribbean.
Looking Ahead
The FSB points to emerging technologies such as Project Agorá, which explores tokenised central bank money for cross-border settlements, and the World Bank’s FASTT programme, which supports over 60 countries in modernising payment infrastructure. These could become pivotal to bridging current gaps if broadly adopted.
However, the report warns that achieving tangible results requires “national-level action and private sector engagement.” Greater alignment between financial institutions, regulators, and technology providers will be essential to delivering on the G20’s 2027 targets.
By prioritising collaboration and ensuring equitable access to technology, the FSB believes the roadmap could still succeed in transforming how money moves across borders — but only if the next two years deliver visible, measurable change.
