Faster Cross-Border Payments

How linking instant payment systems like UPI across countries, and projects like the BIS's Nexus, aim to make international transfers faster and cheaper.

Sending money across borders has long been slow and expensive. The G20 set targets to make cross-border payments faster, cheaper and more transparent by 2027. New technologies and links between national payment systems are helping.

Why it’s slow and costly

Chains of correspondent banks.
Different time zones.
Compliance checks.
Currency conversion markups.

The World Bank estimates the global average cost of sending remittances remains well above the UN target of 3 percent.

Linking fast payment systems

Many countries have instant payment systems like India’s UPI, Brazil’s Pix and Singapore’s PayNow. Linking them lets people send money directly between systems:

UPI-PayNow link between India and Singapore launched in 2023.
UPI has been linked or made available for payments in countries including the UAE, Nepal, Bhutan, Sri Lanka, Mauritius and France.
Indian travellers can pay with UPI at some shops abroad.

Project Nexus

The BIS Innovation Hub developed Project Nexus to connect many fast payment systems through a single network instead of building separate links for each pair of countries. In 2024, the central banks of India, Malaysia, the Philippines, Singapore and Thailand agreed to work toward launching Nexus.

Other approaches

Central bank digital currencies and cross-border experiments.
Stablecoins, though they raise regulatory concerns.
Fintech remittance services with lower costs.

Why it matters

Remittances: India is the world’s largest recipient of remittances. Lower costs mean more money reaches families.
Trade and tourism: easier payments help small businesses and travellers.
Financial inclusion.

Challenges

Regulation and anti-money-laundering rules differ across countries.
Currency conversion still needs to be managed.
Governance of shared networks.

The instant remittance

A construction worker in Singapore sends money to his family in Tamil Nadu through the UPI-PayNow link. The money arrives within minutes at a lower cost than traditional transfers, and his family uses it immediately.

Thinking cross-border payments can't be as fast as domestic ones

Linking instant payment systems is making some cross-border transfers nearly as fast as domestic ones.

Key takeaways

Cross-border payments have been slow and costly due to correspondent chains.
UPI has been linked with Singapore's PayNow and made available in several countries.
Project Nexus aims to connect many fast payment systems at once.
Cheaper transfers benefit remittance-receiving families, especially in India.