By 
Efforts by the G20 to enhance the efficiency of cross-border payments are falling behind schedule, with global payment firms expressing disappointment over the likely failure to meet the 2027 targets.
According to the Financial Stability Board (FSB), which oversees the initiative, the original goals set in 2021 — including reducing the global average cost of retail payments to below 1% of transaction value and ensuring 75% of payments settle within one hour — are unlikely to be achieved on time.
“It’s becoming clear that the [G20] targets are not going to be hit by 2027,” said Martin Moloney, deputy secretary general of the FSB, in comments reported by Reuters. He attributed the delay to the vast number of jurisdictions involved and the complexities of modernizing legacy financial infrastructure.
Moloney noted that the G20 now faces a choice: extend the current timeline or redefine its targets entirely.
Industry leaders have voiced frustration, citing outdated systems, fragmented regulations, and dominance by legacy banks as key barriers.
David Patrick, Head of Payments Strategy at RedCompass Labs, emphasized that regulatory inconsistency remains a major challenge.
“Each jurisdiction imposes its own rules on data protection, anti-money laundering, and capital movement, often with limited interoperability — adding friction instead of efficiency,” Patrick said. He urged for regulatory alignment rather than additional rules. “Governments should prioritize harmonized standards and open access, allowing technology and competition to drive innovation.”
Mike Walters, CEO of Form3, called for a complete overhaul of the cross-border payment infrastructure.
“The global system still relies on correspondent-bank networks built in the 1970s — costly, opaque, and inefficient,” he said. “If the G20 is serious about reducing costs, it must harmonize regulations, mandate real-time settlement across borders, and build modern, open, and resilient payment rails that can operate 24/7.”
Laurent Descout, CEO and co-founder of digital bank Neo, pointed to the concentration of power among a few major banks as a structural problem.
“While fintechs have reduced cross-border fees and FX spreads significantly since 2011, a small group of banks still dominates the correspondent banking business, creating an oligopoly that restricts competition,” Descout explained.
Despite these challenges, Descout sees promise in emerging innovations such as ISO 20022 message standards and on-chain networks, which could enable cost reductions on an “industrial scale” — provided they gain broader adoption across supply chains.
The G20’s next move, observers say, will determine whether the vision of faster, cheaper, and more transparent global payments can be realized before the decade’s end.
Comments