FSB Sets Quantitative Targets for Coping with Cross-border Payment Challenges
Jan 18, 2024 By Aynsley Moore

The Group of 20 (G20) has prioritized strengthening cross-border payment cooperation. A basic measure is formulating quantitative rules on a global scale to deal with the challenges of cost, speed, accessibility, and transparency faced by cross-border payments. At the same time, the formulation of quantitative rules will be conducive to establish work objectives as well as an accountability mechanism.

The Financial Stability Board (FSB) puts forward the factors that should be considered when formulating quantitative rules. First, the direct purpose should be dealing with the challenges of cross-border payments. Second, the target rules should be forward-looking. Third, the target rules should be able to benefit a wide range of people. Finally, the target should be established from the height of achieving global cross-border payment cooperation.

By considering the global payment pattern and integrating open data from various channels, FSB proposes an action plan, and intends to put forward regulatory goals for the four major challenges in three major market sectors which are wholesale, retail (including B2B, P2B, B2P, and P2P payment services except remittance business) and remittance business. Since some channels in remittance are facing greater challenges and regional frictions in the cross-border payment process, P2P retail payment business and remittance business are differentiated.

According to the plan, except for the cost target of the remittance business, other targets should be implemented by the end of 2027, the first phase of the task. In terms of the programme guidelines, after 2027, G20 will formulate the next target rules for cross-border payment supervision cooperation in accordance with the development of the market.