8 min read
Key takeaways
- The G20 and Financial Stability Board (FSB) aim to create a future where financial services are faster, cost less, are more transparent and are more accessible to traditionally underserved groups, small businesses and communities in developing regions, with the support of key industry players like J.P. Morgan
- Several obstacles need to be overcome to reach the G20 and FSB goals, including regulatory fragmentation, legacy infrastructure, cybersecurity risks and foreign exchange (FX) complexity
- J.P. Morgan is at the forefront of reshaping cross-border payments in alignment with the G20 and FSB goals through global expertise, human-centric innovation, strategic technology investments and elevated partnerships
There are many complex global challenges when it comes to moving money, including increased transaction costs, technological disparities between senders and receivers, fraud and security risks, and complex regulatory compliance. In 2020, the G20—in partnership with the Financial Stability Board (FSB) and hosted by the Bank for International Settlements—set forth ambitious goals to be reached by the end of 2027 to try to overcome those challenges and increase the efficiency and reliability of cross-border payments.1 While the FSB has since stated that the goals will not be reached in that time, the effort is still underway.2 Reaching the intended targets is a beacon for international cooperation and sustainable development, enabling seamless access to global markets for everyone, regardless of geographic location or economic status.
Broadly, the G20 goals were to reduce costs, increase speed, broaden access and enhance transparency in retail cross-border payments. Related to these goals, specific targets were defined to solve the following problems:3
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Costs
Target: Reduce the global average cost of cross-border payments to less than 1%
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Speed
Target: 75% of cross-border payments should be credited to the end-user within an hour
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Access
Target: Ensure that all end-users—including individuals, businesses (including micro, small and medium-sized enterprises (MSMEs)) or banks—have at least one option for sending or receiving cross-border electronic payments
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Transparency
Target: Increase the number of traceable payments with an upfront foreign exchange (FX) and fee to more than 90%
(For wholesale payments, which are transactions of $100,000 or more, the FSB goals are to increase the percentage of cross-border payments settled within one hour and one business day. For the purposes of this article, references to the G20 and FSB goals are strictly for retail payments.)
The G20 goals are meant to remove payments friction and make the process easier for all involved. Both senders and recipients see advantages when low-value payment costs drop, tracking payments is easier, money moves faster and more of the population has access to their well-earned income.
Understanding the significance of the G20 goals directly impacts the financial institutions (FIs) that serve as the backbone of the global economy. By aligning their strategies with the G20's objectives, FIs—including J.P. Morgan—can not only mitigate risks, but also seize opportunities for innovation and growth. Let's explore how these goals influence the financial sector and why reaching the targets is pivotal for its future success.
Why the targets matter
Cross-border payments have a significant impact on the global economy, with the market expected to grow from $195 trillion in 2024 to $320 trillion by 2032.4 The G20 and FSB have prioritized this area because greater inclusion and improved efficiency are vital for driving economic growth.
Remittances alone play a crucial role, with more than $900 billion sent globally in 2024.5 With an estimated 1.4 billion adults unbanked, many depend on remittances, but those transactions are often eroded by high fees.6
Additionally, as economies become increasingly computerized, those without access to financial services may be excluded from participating in the digital economy, including e-commerce and digital payments. The UN reports that more than 2.7 billion people across the world lack regular internet access, so even if they are in a location where cross-border payments exist, they may not be able to send or receive them—delaying the time it takes for a payment to reach its desired destination.7 Global organizations, local and national governments and private business all have a hand in increasing worldwide internet access.
Expected to grow from $195 trillion in 2024 to $320 trillion by 2032.4
$900 B: Total remittances sent globally in 20245
1.4 B: Adults unbanked, many depend on remittances6
2.7 B: People across the world lack regular internet access7
References
Many organizations, corporates and private sector entities contribute to achieving the G20 goals, each addressing different aspects of the four targets. While progress has been made, continued collaboration among countries, global organizations and financial institutions is essential to overcome barriers to global economic participation.
For FIs, prioritizing these efforts can have a tremendous impact. Increased efficiency and reduction of costs can strengthen customer loyalty and retention, as satisfied customers are candidates to use additional banking services. Lower fees and faster speeds help foster competition and can encourage more frequent and higher-volume transactions, which can offset the reduced revenue per transaction and lead to an increase in volume for greater overall profitability. Greater access and richer data can help FIs offer greater personalization for their clients, tailoring products and services to individual client needs, preferences and behaviors.
Where things stand today
Even with continued collaboration and efforts, many obstacles remain that impact the reduction of costs, increase of speeds, expanded access and greater transparency that the G20 and FSB are striving for. Some of the greatest obstacles include:
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Regulatory fragmentation: Differing privacy, anti-money laundering and data standards complicate interoperability
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Legacy infrastructure: Many corridors depend on outdated batch systems, fragmented legacy platforms or non-digitized bank processes
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Cybersecurity and fraud: More open systems mean higher exposure, unless they are properly secured
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FX complexity: FX costs and delays continue to erode value, especially in exotic corridors
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Liquidity friction: Prefunding and nostro arrangements remain expensive and opaque
These challenges remain significant headwinds of the goals outlined by the G20 and FSB. While collaborative efforts are working to circumvent them, evolving customer demands also introduce additional complexities. Remittance costs, for example, have long been a persistent issue, with significant variation across regions due to differences in payment infrastructure. This impacts the cost, speed and accessibility of cross-border payments. For instance, sending money to Sub-Saharan Africa remains the most expensive globally, with an average cost of 8.78% per transaction, compared to the global average of 6.26% and just 4.8% in South Asia, the lowest worldwide.8
There are global pushes to achieve all four targets. Initiatives such as ISO 20022, a global standard for electronic data interchange between FIs, aims to raise transparency of payments and enrich financial data; with expectations that the new standards could help to reduce costs and increase the speed of payment. Payment instructions need to be fully migrated to the new standard by November 2025, so collaborating with J.P. Morgan—an early adopter and leader in the ISO space—can be beneficial to help avoid facing costly delays.9
Some countries have created partnerships by connecting corridors—like one between Thailand and Singapore—to make remittances across their borders faster and cheaper.10 Although numerous bilateral and multilateral agreements have been introduced to facilitate cross-border payment processing, these initiatives may not fully resolve the underlying interoperability challenges.
In 2024, the U.S. Federal Reserve proposed expanding its working hours for Fedwire Funds and the National Settlement Service to seven days a week, providing more time for participants to send and receive electronic funds.11 The U.S. industry continues to discuss how best to meet market demand and support the role of the U.S. dollar as the preferred global settlement currency.
With all those efforts in mind, here’s a snapshot of the four FSB targets using the latest available data:3
Goal |
2023 |
2024 |
Percentage point change |
Additional note |
|---|---|---|---|---|
Cost: Global average percentage cost of business-to-business payment (B2B) to be no more than 1% |
1.5 |
1.6 |
Up 0.1 |
B2B costs are actually the closest to the target; both business-to-person and person-to-business payments are at 2.0% |
Speed: Percentage of cross-border payments credit recipients within one hour of initiation to >75% |
34.2 |
33.5 |
Down 0.7 |
69% of cross-border payments were credited to recipients within one day of initiation, down from 74% the previous year |
Access: Percentage of users that have an account at a regulated FI |
90 |
90.5 |
Up 0.5 |
In 2023, 76% of adults worldwide had a transaction account at a regulated FI; data were not provided for following years |
Transparency: Percentage of payment services that provide cost and speed information >90% |
54.5 |
55.6 |
Up 1.1 |
More than 66% of peer-to-peer payments provide cost and speed information, up considerably from 64.1% the year prior |
J.P. Morgan is working to help achieve the G20 targets and is also supporting other FIs in reaching these goals.
Our role and commitment to the G20
In alignment with the G20 and the FSB, J.P. Morgan is actively engaged in reshaping cross-border payments. Through our products and services, as well as our work in markets all over the world, we are not only adapting to the changing needs—we are helping lead others. By prioritizing trust and reliability in every solution, we aim to set the standard for secure and dependable cross-border transactions.
That is why we apply highly adaptable levels of service to build lasting partnerships at scale. Working with MAS, ECB and BIS Innovation Hub on joint initiatives and ongoing leadership roles in industry bodies including SWIFT and FSB taskforces, showcase our attempt to be a part of the larger solution.12,13,14,15,16
That said, as a global leader in financial services, we understand the importance of walking-the-walk as well as talking-the-talk. J.P. Morgan is focused on supporting the G20 objectives through innovative solutions and strategic partnerships:
Cost: Strategic investments in low-value clearing and the remittance space has led to more affordable and accessible remittance services, benefiting both service providers and consumers while driving efficiency and reducing costs. At the forefront of this initiative are intuitive and efficient solutions that optimize and adapt to the evolving needs of our clients. These include Xpedite, which offers easy-to-integrate cross-currency solutions that give FIs access to onshore FX rates and connectivity to real-time networks. As one of the largest clearers of U.S. dollars, we capitalize on economies of scale to reduce costs, passing these savings on to our clients.17
Speed: Working closely with correspondent and beneficiary banks to improve the final leg of settlement, our priority is to move money to its intended destination as fast as possible. Wire 365 facilitates the global movement of money every day of the year. Kinexys employs blockchain technology to accelerate the speed and efficiency of cross-border payments. In addition, J.P. Morgan is one of 30+ FIs across the world that is working with Swift in their development of a blockchain-based shared ledger that will help facilitate real-time 24/7 cross-border payments.18
Access: With more than 4,000 corresponding banking partners, we enable clients to navigate any market in the world with confidence.19 Working across 160 countries and territories in 120 global currencies, we process more than $10 trillion on an average day.20 Strategic partnerships with regional banks and mobile money operators in Africa, Latin America and Southeast Asia help expand access and accelerate growth in emerging markets and our Global Clearing solution supports clients and governments in navigating change.
Transparency: Our firm’s $18 billion annual investment in technology supports strategic enhancements in transparency and regulatory compliance.21 This helps clients worldwide gain visibility into real-time intraday activity and projected balances, thereby enhancing risk management.
The road ahead
The vision of efficient, inclusive and interoperable cross-border payments is within reach—and the potential payoff is significant. As we follow the G20 roadmap to achieve the goals outlined, there are already benefits being seen, with costs dropping and transaction speeds rising. From our investments in blockchain-native infrastructure and our work with global regulators, to our efforts on transparency and speed, J.P. Morgan aspires to enable the next generation of global payments—aligned with the G20 and FSB’s vision. While we are proud of the strides we are making, we recognize that achieving meaningful progress requires a collective commitment from the entire industry, as well as those in the public sector. We can help other FIs as we work to reach these goals, and together we can drive the changes needed to create a more sustainable and equitable future for all.
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References
https://www.swift.com/news-events/press-releases/swift-add-blockchain-based-ledger-its-infrastructure-stack-groundbreaking-move-accelerate-and-scale-benefits-digital-finance
JPM Internal Data
https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/events/2025/jpmc-2025-investor-day/full-presentation.pdf, slide 111. Based on regulatory reporting guidelines prescribed by the Federal Reserve for U.S. Title 1 planning purposes; includes internal settlements, global payments to and through third-party processors and banks, and other
internal transfers
Disclaimer
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