G20 Likely to Miss 2027 Cross-Border Payments Goals, Says FSB

Global financial regulators warn that the G20 group’s ambition to make international cross-border payments faster, more affordable, and more transparent by 2027 is unlikely to be met, according to a recent Financial Stability Board (FSB) progress report. 

The 2021 G20 Targets & Roadmap

In 2021, G20 leaders endorsed a “Roadmap” aimed at improving cross-border payments. Key goals included:

• Reducing the global average cost for a retail cross-border payment to no more than 1 %

• Ensuring 75 % of wholesale and retail payments are credited within one hour of initiation 

Since then, much of the foundational work in the Roadmap’s initial phases has been completed. However, the latest FSB report indicates that those efforts have not translated into meaningful improvements for consumers globally. 

Why the Targets Are Slipping

“It’s becoming clear that the (G20) targets are not going to be hit by 2027”

FSB Deputy Secretary General Martin Moloney told Reuters that coordination among many countries and the need to overhaul payment infrastructures are major obstacles. 

The FSB report notes that Key Performance Indicators (KPIs) show only slight improvements at the global level since 2023. While transaction speed in wholesale and remittance segments has improved somewhat, costs remain high and transparency is still lacking. 

Moloney suggests that G20 decision-makers must either extend the 2027 deadline or adopt entirely new targets. “If we fall short of those KPIs we will still have an unsatisfactory situation,” he said.

Persistent Challenges: High Costs, Transparency Gaps & Infrastructure

Even as some speed gains accrue, cross-border payment costs remain stubbornly high. In sub-Saharan Africa, person-to-person transfers now average 4 %, up from 3.2 % in 2023 — far above the G20’s 1 % target. 

A core barrier is that many national payment systems do not operate round the clock or lack standardized messaging protocols. This complicates cross-border routing, fraud detection, sanction compliance, and reconciliation. 

Another emerging factor: cryptocurrencies and stablecoins are being explored in some corridors. But Moloney said, “The real issue is in the first and last leg,” meaning that even if digital assets help in transit, identifying reliable entry and exit mechanisms for end users remains unresolved. “I haven’t seen anything persuasive … to suggest they would solve those issues.” 

What Comes Next: Extension or Reset?

With the 2027 target increasingly unrealistic, G20 leaders must engage in a “rich and focused debate” on whether to extend the deadline or establish new benchmarks better aligned with technological progress and jurisdictional capacities. 

Some ongoing efforts may help: the FSB has launched a Forum on Cross-Border Payments Data, aimed at harmonizing data frameworks, interoperability, and cross-border risk management. 

Yet without stronger coordination, faster infrastructure upgrades, and transparent governance, the global payments system risks falling short of its promise.

Conclusion

The G20’s vision for frictionless, low-cost cross-border payments by 2027 is now under serious threat. While foundational plans are in place, real-world execution lags, and citizens and businesses have yet to feel the benefits. As global complexity and technological innovation accelerate, the G20 must decide: extend the 2027 deadline or chart a new, more pragmatic roadmap. Either way, without swift, coordinated action, obstacles in cost, speed, and transparency will persist — hampering financial inclusion, global trade, and digital connectivity.