Cross-border payments - a catalyst for global integration and growth
Presentation by Mr Frank Smets, Deputy Head of Monetary and Economic Department of the BIS, at the SEACEN 61st Governors Conference, Bali, 28 October 2025.
Thank you for the kind invitation to join you today and discuss payment systems.
Payments are the oil that keeps the wheels of the economy rolling smoothly. They support both domestic trade and cross-border exchanges. Efficient payment systems lower transaction costs for individuals and businesses and foster inclusion, ultimately bringing widespread economic benefits.
Naturally, the flipside is that when payments are costly, slow or inaccessible, they act as sand in the wheels of the economy. These costs can amount to a couple of percentage points of GDP (BIS (2020)).
The world of payments is transforming rapidly, in large part because of technological advances. This transformation can strengthen economic and financial integration and boost growth. But this is not guaranteed. Central banks have a role to play in getting the transformation right.
In my remarks today, I will focus on cross-border payment connectivity and related work that we have been doing at the BIS. I will examine the pain points in cross-border payments and discuss how advances in digital technology can help overcome them.
