Data from one report shows this trend in 90% of payments, with delays accruing to domestic infrastructure, processing and regulatory issues
In 2020, at the G20’s request, the Financial Stability Board (FSB) developed a comprehensive roadmap to enhance cross-border payments. This roadmap, consisting of 19 building blocks, aims to improve the speed, transparency, cost and accessibility of cross-border payments for wholesale, retail and remittance segments.
The G20 had set 2027 as the deadline to meet ambitious targets, such as the processing of 75% of cross-border payments end-to-end within an hour. Recent figures show that many countries are already ahead of schedule. As of Oct 2024, according to new data* provided by SWIFT, cross-border payments are speeding up globally, with 90% of international transfers reaching destination banks within an hour.
The information highlights progress towards the G20’s objective of enhancing the speed and efficiency of these transactions. Of the top 40 countries by payment volume, all but two have been exceeding the G20’s goals. International payments in regions such as the Eurozone, the Middle East, and Africa are settling more quickly compared to last year. For example, 92% of payments to the Eurozone now settle within an hour, marking a 3% improvement, while the Middle East saw a 1.8% increase and Africa a 1.5% rise.
However, discrepancies remain at the domestic level. While payments often reach the recipient bank quickly, some delays may occur between the time funds arrive and when they are credited to the end customer. These delays are often due to domestic issues such as market infrastructure limitations, regulatory checks, or practices requiring customer confirmation of the payment. The SWIFT data showed that only 43% of cross-border payments reach the customer’s account within an hour, leaving room for improvement in the final leg of transactions.
Going by the data trends, those countries with efficient real-time payment systems have tended to outperform G20 speed targets. In these countries, banks operate continuously, and payment processing is not hindered by regulatory or market restrictions. To streamline the domestic portion of payments, further collaboration between financial institutions and regulators is necessary.
*The data is offered based on the proviso that “because financial institutions have multiple means to exchange information about their financial transactions, Swift statistics on financial flows do not represent complete market or industry statistics. Swift disclaims all liability for any decisions based, in full or in part, on Swift statistics, and for their consequences.”
