– To meet the G20’s goal of improving speed, cost, access and transparency by 2027, the consumer remittance industry must reduce remittance costs by 27% annually.
– This is according to a new FXC Intelligence analysis of the Financial Stability Board’s annual report on achieving the G20 targets set for 2027, which actually underperformed in most indicators from 2023 to 2024. This has been shown.
– FSB includes extensive regional and market type data in its reports, much of which is sourced directly from FXC Intelligence.
To meet the G20 goal of bringing global average retail cross-border payment costs below 1% by the end of 2027, the consumer remittance industry needs to reduce remittance costs by 27% each year.
This is according to FXC Intelligence’s analysis of the Financial Stability Board’s (FSB) annual report on achieving the targets set for 2027, published this week. FSB reports include a wide range of regional and market type data, much of which is provided by FXC Intelligence, a leading provider of cross-border payments data and intelligence. FXC Intelligence’s data feeds directly into the retail payments section of the G20 Benchmark, one of the three segments that make up the roadmap. FXC Intelligence data also indirectly feeds into the remittances segment, as it supports the World Bank’s global remittance price dataset used in this section.
The retail section covers P2P payments (non-remittance consumer remittances) as well as B2B, B2P, and P2B payments. Overall, the FSB report shows that retail payments will not show a significant improvement in 2024 compared to 2023, will see rising costs and slowing in most indicators on a global average scale, and will continue to grow in 2027. It shows that you are moving away from your goal.
The global average cost of P2P transfers of $1,000 and $10,000 increased by 0.07 percentage points and 0.1 percentage points to 2.6% and 1.9%, respectively.
To meet the G20 targets, the average global remittance cost for a $1,000 consumer remittance will need to fall by 27% annually from now until 2027, while the cost for a $10,000 remittance will decline by 27% each year, according to analysis by FXC Intelligence. These costs need to be reduced by 19% each year. This equates to a 0.7 percentage point reduction on $1,000 and a 0.4 percentage point reduction on $10,000 in 2025.
Lucy Inhgam, Editor-in-Chief and Head of Content at FXC Intelligence said:
“It is clear that the industry has a long way to go to achieve the G20 goals. It may be easy to be discouraged by the limited progress made over the past year, but we believe that the industry will have a long way to go to achieve the G20 goals in the coming years. There is still great potential to achieve this. There is a clear opportunity for many providers of cross-border payments, especially as the need for improvement is very high in some regions.
“The benefits of data in improving the cost and speed of cross-border payments are clear and FXC Intelligence is proud to be able to contribute. Our insights will continue to help benchmark progress and continue to grow in the coming years. We hope to lead the industry towards achieving the G20 goals.”
For FXC Intelligence’s analysis of the FSB’s latest information, read our report: How have retail payments fared against the 2024 G20 cross-border roadmap targets?
Detailed information
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