A Policymaker’s Guide to Enabling Low-Value Remittances in Cross-border Payment Systems

Location Global

This Handbook highlights how policymakers, in their role as either implementers or enablers, can play a pivotal role in improving cross-border payments and remittances. It is designed to provide general guidance to policymakers on the journey to improving cross-border remittances in their countries, as well as specific insights to foster inclusivity in cross-border payment models. The Handbook highlights insights, points to promising features and examples from existing implementations, and provides practical tools. The set of tools includes frameworks for evaluating the choice of model, actions for implementing inclusive design attributes, detailed guides for evaluating, building, and strengthening the business case, an overview of governance considerations, a checklist of supportive regulations, and resources on remittance data collection, among others.

At UNCDF, we recognize that migrant remittances play a crucial role in the financial lives of millions of people worldwide. Yet, despite global efforts to enhance cross-border payments, including initiatives like the G20 Roadmap and the UN’s Sustainable Development Goals (SDGs), the specific challenges faced by migrant workers and their families continue to be overlooked. High costs, slow processing times, and limited access to formal financial systems remain persistent barriers, especially for those most in need.

Through our work, we have seen that while digital payment solutions hold immense promise, they often fall short of addressing the unique realities that migrants face. Social and regulatory barriers prevent many from fully benefiting from these advances, forcing them to rely on outdated, cash-based methods that are not only expensive but also inefficient.

At UNCDF, we believe that addressing these gaps requires a deliberate focus on migrant remittances within the broader cross-border payment landscape. Our research underscores the importance of creating payment systems that are both inclusive and sustainable, built on the principles of Digital Public Infrastructure (DPI). By leveraging interoperable, secure systems designed for scalability, we can help drive innovation and expand financial inclusion for some of the world’s most vulnerable populations.

However, inclusion alone is not enough. For these systems to succeed, they must also be commercially viable. It is essential that policymakers and stakeholders align public policy objectives with market incentives, ensuring that payment models serve the needs of both low-income users and the private sector. Our Handbook offers practical tools and strategies for integrating remittances into cross-border payment reforms, with a focus on sustainability and scalability.

At UNCDF, we remain committed to working with governments, private sector partners, and other stakeholders to build financial systems that meet the needs of migrants and their families. By prioritizing remittances within future cross-border payment models, we believe we can help create a more equitable and resilient global financial system—one that truly leaves no one behind.