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Why it matters?

Cross-border payments have long been a hot topic within the banking industry and despite the fact we often hear the term “real time payments”, the reality is that a simple transaction takes days to settle. 

According to The World Bank’s Remittance report (June 2023), the global average cost of sending $200 across the border is 6.20% (620 basis points). Not to mention, the settlement time is up to 5 business days in some less commonly used currency pairs.

 

During their G20 presidency 2019/2020, Saudi Arabia raised the issue to the global market leaders and in collaboration with the Financial Stability Board (FSB) released a G20 Enhancing Cross-Border Payments Roadmap aimed to enhance the global financial ecosystem. The targets set in the G20 cross-border payments roadmap are to increase speed of settlement and reduce transaction cost from current average to 3% (300 basis points). This resulted in multiple discussions and projects ideation however, no real progress being achieved in the space to date as the majority of proposals and discussions are related to the potential issuance of Central Bank Digital Currencies (CBDC’s). The problem is that CBDC’s will take many more years to be issued and adopted in most parts of the globe.

As a result, The 2023 KPI report by The Financial Stability Board (FSB) highlights multiple areas of concern.

We pride ourselves on PayNetX being the first truly interoperable underlaying Value Transfer Infrastructure (VTI) in the world that not only meets but also significantly surpasses the targets set in the G20 cross-border payments roadmap in today's financial markets, without dependency on crypto markets, stablecoins, or CBDCs.

Contact us to learn how and book a demo.

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