For African and other developing markets, the stakes are high. Cross-border transactions remain slower and more expensive than domestic payments, while many trade and remittance flows still rely on correspondent banks outside the continent. That structure often means higher fees, longer settlement times and heavy dependence on a narrow set of global reserve currencies.
According to the World Bank, the global average cost of sending remittances remains above 6%, more than double the UN Sustainable Development Goal target of 3%. Sub-Saharan Africa continues to record some of the highest remittance costs globally, placing pressure on households that depend on diaspora income.
Speaking at the G-24 Technical Group Meetings in Abuja, Nigeria’s central bank governor, Olayemi Cardoso framed the issue as a development priority rather than a technical reform.
“Today, cross-border payments remain too slow, too costly, and too fragmented, especially for developing economies. With global remittance corridors costing over 6.0 percent, settlement lags of several days, and compliance burdens that exclude MSMEs, millions remain disconnected from global opportunity,” he said.
The G-24, which represents developing countries in discussions at the IMF and World Bank, has increasingly argued that modern digital infrastructure could help correct these inefficiencies. The focus is on reducing remittance costs, enabling faster trade settlement and strengthening the use of local currencies in cross-border transactions.
Cutting costs and reshaping trade flows
Several emerging markets have already demonstrated how digital systems can transform domestic payments at scale.
India’s Unified Payments Interface (UPI) has enabled real-time retail transfers for hundreds of millions of users and is now being linked to countries such as Singapore and the UAE. Brazil’s PIX reached widespread adoption within two years and is being tested for cross-border integration in parts of Latin America. Both systems show how interoperable digital platforms can lower costs and improve financial inclusion when supported by clear regulation.
Africa is pursuing a similar ambition through the Pan-African Payment and Settlement System (PAPSS), which aims to allow businesses to settle intra-African trade in local currencies rather than routing payments through offshore banks. Policymakers argue that such systems could reduce transaction costs, conserve foreign exchange and deepen regional value chains under the African Continental Free Trade Area.
Nigeria provides a recent example of how targeted reforms can affect flows. After addressing bottlenecks in remittance channels and introducing new diaspora account frameworks, monthly remittance inflows now average about $600 million, according to Cardoso.
Authorities say they are working towards a potential $1 billion monthly milestone.
Sub-Saharan Africa receives more than $50 billion in remittances annually, according to World Bank estimates.in several economies, rival or surpass foreign direct investment. Lowering transaction costs by even a few percentage points could translate into billions of dollars retained within local economies each year.
Risks to monetary stability
Yet the digital transition also raises new policy concerns.
The rapid expansion of private digital payment platforms and stablecoins has prompted warnings from central banks about currency substitution and weaker monetary policy transmission. In countries with shallow financial markets, sudden capital movements enabled by digital channels could amplify foreign exchange volatility.
There is also a governance question. Emerging Market and Developing Economies are pressing for a stronger voice in shaping global payment standards, arguing that fragmented digital systems could entrench dominant currencies and platforms if not coordinated.
For many African and other G-24 members, the debate is therefore about more than efficiency. It touches on monetary sovereignty, financial stability and long-term development strategy.
If digital cross-border systems are designed with strong oversight, interoperability and regional cooperation, they could reduce remittance costs, expand trade and improve inclusion. If poorly sequenced, they risk introducing new vulnerabilities.
The outcome will help determine whether digital payments become a tool for economic transformation, or another layer of financial dependency.
