Retail Payments' Performance in Relation to G20's Cross-Border Guidelines Set for 2024
News Article: Cross-Border Payments Progress Report Released
The Financial Stability Board (FSB) has published its annual update on the progress of the G20 Roadmap for Enhancing Cross-Border Payments, providing insights into various aspects of cross-border payments, including P2P money transfers, B2B payments for MSMEs, B2P payments, and P2B payments.
According to the report, performance against the G20 targets has declined across most metrics between 2023 and 2024 in the retail payments sector. Global average payment speeds decreased in 2024 compared to previous years, and rising costs and slowing speeds were observed in B2B and B2P cross-border payments.
However, some regions have seen significant price changes in P2P payments between 2023 and 2024, with the least expensive regions for P2P payments in 2024 highlighted in the report. The progress of P2P payments towards the 2027 target of a 3% average cost remains to be seen.
Transparency gains have been made in cross-border payments, but PSP drop-outs have created challenges. Cost improvements have been noted in P2B cross-border payments.
The G20 Roadmap, established around 2020-2021, aims to improve cross-border payments by enhancing speed, cost, access, and transparency, targeting a total retail cross-border payment cost of 1% by 2027. Key enablers for improved cross-border payments include extending real-time gross settlement (RTGS) system operating hours towards near 24x7 settlement, tackling time-zone mismatches and liquidity frictions.
Regulatory reviews are focused on reducing retail payment costs, increasing competition, and promoting transparency in card payment fees to help reach G20 cost reduction targets. Within Europe, the Eurosystem’s consolidated TARGET Services platform is scaling up, enhancing cross-border and multi-currency settlement capabilities in real-time, facilitating faster retail and wholesale transactions.
The report also provides insights on the speed performance of P2P payments and identifies the most expensive regions for P2P payments in 2024. The update is presented in an annual report and a consolidated progress report, providing key performance indicators (KPIs) for the industry. The data in the retail section of the G20 Roadmap is directly supplied by the specific platform.
If you require precise current metrics for P2P retail payments against the G20 targets, consulting the most recent official G20 or CPMI (Committee on Payments and Market Infrastructures) annual report on cross-border payments would be needed, as these sources were not fully covered in the search results.
Technology advancements in cross-border payment systems are impacting the retail sector, with the Eurosystem’s consolidated TARGET Services platform enhancing real-time multi-currency settlement capabilities.
Finance professionals and retailers alike are closely monitoring the progress of P2P payments, particularly in the industry's key performance indicators (KPIs), as the costs in some regions have dropped significantly while others remain expensive, leading to the question of whether the 2027 target of a 3% average cost will be achieved.
