Committee examines digital payment systems and facilitating cross-border remittances

Facilitating digital payment systems and remittance services

The day-and-a-half thematic session provided an opportunity for members to discuss developments related to digital payments and cross-border payment technologies and their impact on trade in financial services. Building on previous work in the Committee, it also examined how trade in services could facilitate cross-border remittance services, looking at the role of digital payments. 

WTO members, international organizations - including the World Bank, the Bank for International Settlements, the financial services arm of the International Organization for Standardization (ISO TC68) and the United Nations Capital Development Fund(UNCDF)- and private sector experts participated in the event and shared a wide range of information and experiences.

Participants emphasized the importance of competition and transparency in payments and remittance services markets. They also said that building robust digital payment systems required not only technology and innovation but also sound regulatory frameworks to address issues such as cross-border data flows, interoperability and overall governance. They highlighted that enhancing interoperability among payment systems can lower costs, increase speed, and foster financial inclusion, with the WTO rulebook playing a role in promoting standards, preventing unnecessary restrictions on cross-border data flows, and ensuring market access and national treatment. 

On cross-border remittances, participants stressed the importance of diverse transfer channels - from banks and post offices to mobile platforms - and discussed domestic, bilateral and regional initiatives to improve access, efficiency and cost reduction.

Members welcomed the wealth of new information and the technical solutions showcased during the session. Many highlighted the development dimension, underlining the urgent need to lower cross-border payment costs and enhance financial inclusion. 

Members suggested possible follow-up discussions building on the information shared during the thematic session. The Chair, Mr. Will Nixon of Australia, encouraged members to continue deliberating on the topic and to consider member-driven responses, in line with the General Agreement on Trade in Services.

Morocco-African Group proposal on remittances

Members continued discussions on a communication from Morocco and the African Group (document S/FIN/W/103/REV.1) highlighting the role the WTO could play in increasing predictability and policy transparency to reduce remittance costs. They intend to submit a draft Ministerial declaration for MC14, outlining concrete actions to strengthen multilateral cooperation and lower remittance costs.

Some members supported the proposal, while others suggested further clarifications are needed to ensure the actions remain within the WTO's remit and do not duplicate work in other international fora.