What's Happening?
Gary Palmer, Founder and CEO of Payall Payment Systems, has issued a warning that current global targets for cross-border payments risk obscuring persistent delays and high costs for customers. This concern is highlighted in a new report from The Payments
Association, developed in collaboration with Payall. The report, titled 'Rethinking Cross-border Payments Targets,' scrutinizes whether existing metrics accurately reflect the real-world experiences of businesses and consumers conducting international transactions. While acknowledging progress since the Financial Stability Board (FSB) established targets in 2021, the report points out that nearly one in five monitored corridors (18.3%) still had average retail payment costs above the FSB’s 3% threshold in 2025. Palmer emphasizes that focusing solely on overall improvements in individual components of the payment process does not necessarily translate to a better payment experience for all parties involved, advocating for a more holistic measurement approach.
Why It's Important?
This report is significant for U.S. businesses and consumers engaged in international trade and remittances, as it directly addresses the efficiency and cost-effectiveness of cross-border payments. High costs and delays can erode profit margins for businesses, particularly small and medium-sized enterprises (SMEs) that rely on international transactions. For consumers, these issues can impact the speed and affordability of sending money to family abroad or making international purchases. The call for greater scrutiny of customer outcomes and the entire payment journey, rather than just isolated improvements, suggests a potential shift in how regulatory bodies and financial institutions approach payment infrastructure. If these recommendations are adopted, it could lead to more transparent pricing, faster transaction times, and enhanced security measures, ultimately benefiting U.S. economic stakeholders by fostering more efficient global commerce and personal finance.
What's Next?
The Payments Association recommends that future targets for cross-border payments place a stronger emphasis on the complete payment journey and performance within individual corridors. This includes evaluating whether funds reach recipients at the expected time and cost. Furthermore, the report proposes integrating safety and security as an explicit component of the framework, alongside existing targets for cost, speed, access, and transparency. This would involve measuring payment fraud, misdirection, fund recovery, financial crime controls, and operational and cyber resilience. These recommendations suggest that regulatory bodies and financial institutions may need to revise their measurement methodologies and invest further in end-to-end payment solutions. The ongoing dialogue initiated by Payall and The Payments Association could influence policy discussions and lead to new standards aimed at improving the overall integrity and user experience of international payments.
Beyond the Headlines
The issues raised by Gary Palmer and The Payments Association extend beyond mere transactional efficiency, touching upon deeper ethical and systemic concerns within the global financial landscape. The report implicitly highlights the potential for 'greenwashing' in financial innovation, where superficial improvements mask underlying inefficiencies or inequities. By advocating for a focus on the 'payment experience for all parties,' it underscores a commitment to financial inclusion and fairness, ensuring that technological advancements genuinely benefit all users, not just those with access to the most advanced systems. The emphasis on safety and security also points to the increasing sophistication of financial crime and the need for robust, integrated defenses across international payment networks. This holistic perspective could drive a more responsible and equitable evolution of cross-border payment systems, fostering greater trust and participation in the global economy.
