IMF Working Papers

Global Cross-Border Payments: A $1 Quadrillion Evolving Market?

By Eugenio M Cerutti, Melih Firat, Martina Hengge

June 13, 2025

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Format: Chicago

Eugenio M Cerutti, Melih Firat, and Martina Hengge. "Global Cross-Border Payments: A $1 Quadrillion Evolving Market?", IMF Working Papers 2025, 120 (2025), accessed July 16, 2025, https://doi.org/10.5089/9798229013505.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Cross-border payments are essential to the global financial system, facilitating trade and investment. The global cross-border traditional and crypto payment market approached a value of about one quadrillion dollars in 2024, with crypto payments representing only a small fraction despite their recent surge. Focusing on data from Swift—the largest traditional cross-border financial messaging network—we study the characteristics and evolving patterns of these payments over 2021-24. Notably, payments are predominantly concentrated in advanced economies, and are driven by financial institutions and large transactions. While currency usage remains stable—with the U.S. dollar maintaining the largest share—the Chinese renminbi demonstrates signs of increasing global integration, albeit from a low base. Gravity model estimates confirm that traditional economic linkages, via trade, portfolio investment, and FDI, shape cross-border payments. However, aggregate dynamics mask substantial heterogeneity across message types (customer vs. financial related payments), currencies, and transaction sizes, with information asymmetries playing a diminished role in larger payments.

Subject: Balance of payments, Currencies, Foreign direct investment, Imports, International trade, Money, Portfolio investment

Keywords: Cross-border payment, Cross-Border Payments, Crypto payment market, Currencies, Customer payment, Europe, FDI, Financial institution payment, Foreign direct investment, Global, Imports, Networks, Portfolio Investment, Quadrillion evolving market, Trade

Publication Details

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