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G20 Roadmap: Forging a path to enhanced cross-border payments
September 2024
The cross-border payments industry is at a turning point, driven by growing customer demands for speed, transparency, cost efficiency and greater access. This white paper explores how the G20 Roadmap for Enhancing Cross-border Payments addresses this need, and assesses what is needed on the road ahead
The nature of cross-border payments is changing, with factors such as globalisation, migration, small and medium sized industries going global, and the post-Covid surge in digital purchases of goods and services all driving a rise in cross-border volumes and value. Consequently, the value of cross-border payments is estimated to increase from almost US$150trn in 2017 to more than US$250trn by 2027.1
Recognising the importance of efficient payment systems for global economic growth and financial inclusion, in November 2020 G20 members endorsed the Roadmap for Enhancing Cross-border Payments (the Roadmap). It sets quantitative targets to lower costs, increase speed, accessibility and transparency of international payments by the end of 2027. These goals have been organised under three priority themes:
- payment system interoperability and extension;
- legal, regulatory and supervisory frameworks; and
- data exchange message standards.
“Under the umbrella of the Roadmap, major progress has already been made”
Around the world the ISO 20022 migration is underway, which introduces a common, interoperable standard for payment message exchange and helps to lay the foundation for further efficiencies and improved client service. In tandem, efforts have begun to create service level agreements that foster greater transparency in international payments, as well as to interlink domestic payment systems to enable instant cross-border flows.
“Under the umbrella of the Roadmap, major progress has already been made”, writes Marc Recker, Global Head of Product, Institutional Cash Management (ICM), Deutsche Bank in his foreword to the white paper G20 Roadmap: Forging a path to enhanced cross-border payments.
The paper outlines some of the main drivers and provide a qualitative assessment of the key initiatives that are ongoing within each pillar. It explores where more progress is needed and why the industry now needs to work come together to enact solutions that directly address the challenges.