Cross-border digital payments are increasingly being viewed as a core development priority for emerging economies rather than a simple banking upgrade.
For African and other developing nations, inefficient international transfers remain a major constraint, with transactions often routed through foreign correspondent banks, resulting in high charges, slow processing times, and reliance on dominant global currencies.
Data from the World Bank shows that the average global remittance fee still exceeds 6%, far above the UN Sustainable Development Goal benchmark of 3%. Sub-Saharan Africa continues to face some of the steepest transfer costs worldwide, placing strain on families dependent on diaspora inflows.
Addressing delegates at the G-24 Technical Group Meetings in Abuja, Nigeria’s central bank governor, Olayemi Cardoso, described inefficient cross-border payments as a development barrier. He noted that high fees, settlement delays, and complex compliance requirements continue to sideline small businesses and limit access to global markets.
The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development has called for modern digital infrastructure to cut transfer costs, accelerate trade payments, and expand the role of local currencies in cross-border commerce.
Several countries have demonstrated the transformative potential of digital systems. India’s Unified Payments Interface (UPI) supports instant retail transfers for hundreds of millions of users and has begun linking with Singapore and the UAE. Brazil’s PIX platform achieved rapid nationwide adoption and is exploring regional cross-border integration.
Africa is advancing similar reforms through the Pan-African Payment and Settlement System, designed to enable intra-African trade settlement in local currencies rather than via offshore intermediaries. Policymakers argue that such systems could lower transaction expenses, preserve foreign exchange reserves, and strengthen regional trade under the African Continental Free Trade Area.
In Nigeria’s case, reforms targeting remittance bottlenecks and diaspora banking frameworks have lifted monthly inflows to roughly $600 million, with authorities aiming for $1 billion per month. Across Sub-Saharan Africa, remittances exceed $50 billion annually and, in several economies, rival foreign direct investment. Even modest fee reductions could retain billions within domestic markets.
However, policymakers caution that rapid digitalisation carries risks. Central banks are monitoring concerns over currency substitution, capital flow volatility, and the influence of private digital platforms and stablecoins. Emerging markets are also advocating for a greater role in setting global payment standards to prevent fragmentation and excessive dominance by major currencies.
Ultimately, the direction of digital cross-border systems will shape whether they become instruments of economic empowerment or sources of new financial vulnerabilities.