The FSB’s 2023 progress report benchmarks global payments against G20 targets: costs remain high (1.5–2.5%), remittances average 6.3%, and only 54% of wholesale payments settle within an hour. Tokenized solutions could accelerate progress.
Source / Author: Financial Stability Board (FSB)
Publication Date: October 2023
Document with my annotations:
Focus:
The Financial Stability Board’s 2023 KPI Report measures progress toward the G20 Roadmap to enhance cross-border payments—aimed at making global transactions faster, cheaper, more accessible, and more transparent. Using data from SWIFT, FXC Intelligence, and the World Bank, it evaluates wholesale, retail, and remittance payment performance against quantitative targets set for 2027–2030.
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Key Insights
• Wholesale payments: 54% of transactions are credited to end customers within one hour, and 93% within one day; most delays occur at the beneficiary leg, post-SWIFT network.
• Retail payments: Average global cost ranges from 1.5% (B2B) to 2.5% (P2P)—well above the G20 target of 1%. Only 42% of retail payments reach recipients within one hour.
• Remittances: Sending USD 200 costs an average 6.3%, double the UN target (3% by 2030). Even the “Smart Remitter” benchmark averages 3.5%.
• Access: Around 76% of adults and 90% of MSMEs hold transaction accounts, but regional disparities persist—particularly in Sub-Saharan Africa and South Asia.
• Transparency: 57% of retail payment providers disclose full cost and speed information; 98% of remittance providers disclose fees and FX margins.
• Regional variation: Sub-Saharan Africa remains the costliest corridor (8.4% remittance cost), while Europe and East Asia lead in affordability and speed.
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Notable Figures
• Wholesale one-hour settlement rate: 54%
• Retail payment global average cost: 1.5–2.5%
• Global remittance cost (USD 200): 6.3%
• Adults with transaction accounts: 76%
• Payment transparency (retail): 57%
• Remittance transparency (services disclosing breakdown): 98%
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Analyst Take
The FSB’s 2023 KPI report provides the most comprehensive quantitative view of the global payments infrastructure’s modernization gap. While incremental progress is visible—especially through SWIFT modernization and digital remittance tools—the system remains far from the G20’s 2027 targets. Persistent FX costs, regional access disparities, and limited transparency hinder progress. The report underscores the strategic opportunity for tokenization, stablecoins, and programmable money to help achieve the efficiency and transparency metrics traditional systems struggle to meet.
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Citation:
Source: Financial Stability Board, “Annual Progress Report on Meeting the Targets for Cross-Border Payments: 2023 Report on Key Performance Indicators,” October 2023. https://www.fsb.org