The Bank of Italy published a study finding that adopting a Fast Payment System (FPS) reduces the cost of sending international remittances to the implementing country, even without direct links between domestic payment systems. Its most conservative estimate shows a 0.25 percentage point reduction in the cost of a USD 200 remittance, driven mainly by lower foreign exchange margins rather than fixed fees. The effect is concentrated in cash collected remittances and services provided by money transfer operators, with no significant overall reduction for transfers to mobile wallets or bank accounts. Results vary by region, with the largest estimated decline in the Middle East and North Africa and no significant effect in Europe and Central Asia or Latin America and the Caribbean. The study identifies increased competition among remittance service providers as an important transmission channel and suggests that future interlinking of FPS across jurisdictions could amplify the cost benefits.
2026-09-11Bank of Italy
Bank of Italy study finds fast payment systems reduce remittance costs by 0.25 percentage points
A Bank of Italy study finds that Fast Payment System adoption reduces the cost of a USD 200 remittance by about 0.25 percentage points, mainly through lower foreign exchange margins. The reduction is concentrated in cash collected transfers, while increased competition among remittance providers is identified as an important transmission channel.