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Connecting payment systems, linking economies

Author

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

Abstract

Cross-border payments are often slow and costly with many regions underserved by current arrangements. In line with the G20 Roadmap for Enhancing Cross-border Payments, several countries and regions, including the euro area, are working to interlink their domestic fast payment systems as a way 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 trade gains from 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. "Connecting payment systems, linking economies," Research Bulletin, European Central Bank, vol. 146.
    • Handle: RePEc:ecb:ecbrbu:2026:0146:
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    Keywords

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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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