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Unlocking trade potential: the benefits of improving cross-border payments

Author

Listed:
  • Ferrari Minesso, Massimo
  • Lebastard, Laura
  • Bagur, Olga Triay

Abstract

Cross-border payments are often slow and costly and, in some cases, may not be available. In line with the G20 Roadmap, several countries and regions, including the euro area, are working to interlink their domestic fast payment systems to improve speed, cost and transparency. Econometric evidence suggests that countries with interlinked systems trade about 4% more with each other – around half of the effect of a trade agreement and a quarter of the effect of a common currency. The gains of interlinking fast payment systems are larger in regions with high cross-border payment costs and for systems that allow the settlement of wholesale transactions. JEL Classification: E42, F15, F30

Suggested Citation

  • Ferrari Minesso, Massimo & Lebastard, Laura & Bagur, Olga Triay, 2026. "Unlocking trade potential: the benefits of improving cross-border payments," Economic Bulletin Boxes, European Central Bank, vol. 2.
    • Handle: RePEc:ecb:ecbbox:2026:0002:2
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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Systems; Standards; Regimes; Government and the Monetary System
    • F15 - International Economics - - Trade - - - Economic Integration
    • F30 - International Economics - - International Finance - - - General

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