Cross-border payments could be a deterrence for small businesses to enter the global marketplace. Not only are cross border payments costly, they can also take up to 10 days for a payment to be completed. However, global regulators attending the Group of 20 Economies (G20) will have an opportunity to minimize this deterrent later this year as they will be responsible for implementing the three-stage process set out by the Committee on Payments and Market Infrastructures (CPMI), which aims to facilitate cheaper and faster cross-border payments.
While challenges would arise in some jurisdictions with political resistance, a way for the G20 regulators to efficiently further these goals is to create a proper compliance infrastructure which streamlines AML checks such as “Know Your Customer” (KYC).
With the cross-border payments market set to increase to $30 billion by 2030, businesses of all sizes can benefit from the new payments’ infrastructure.
"The cost and hassle of making payments cross border discourages businesses, particularly small businesses, from entering the global market place," CPMI Chair Jon Cunliffe said.