This digest features seven news items curated by Michel Maquil, highlighting the rapid evolution of payment systems globally and their direct impact on financial inclusion. The success stories from Brazil and India demonstrate that public-sector led initiatives with strong regulatory backing can achieve scale and impact impossible for fragmented private sector approaches.
These developments have direct relevance for InFiNe members working on payment systems, remittances, digital financial services, and regulatory frameworks in emerging markets.
Brazil’s instant payment system Pix has achieved remarkable success since its 2020 launch by the central bank, now serving 160 million users (75% of the population). The free service for individuals has enabled over 50 million previously unbanked Brazilians to make their first bank transfer. Its open banking approach allows usage through traditional bank accounts or prepaid accounts, disrupting the dominance of US giants like Mastercard and Visa.
The system’s success has prompted Washington to open an investigation into Brazilian “electronic payment services” practices, with Trump administration concerns about American companies’ competitiveness. However, Europe is watching closely – the European Payments Initiative (EPI) and its Wero service represent the continent’s closest equivalent, though without Brazil’s regulatory mandate.
India’s Unified Payments Interface (UPI) has become a global benchmark for digital payments. This free, interoperable platform now processes:
The system has been instrumental in India’s financial inclusion drive – 89% of Indians now have bank accounts, up from just 53% a decade ago. Prime Minister Modi’s government uses UPI extensively to transfer social benefits directly to citizens’ accounts.
India is actively exporting this technology as part of its soft power strategy. Nepal, UAE, Singapore, Sri Lanka, Namibia, and Trinidad & Tobago have already adopted or integrated UPI. New Delhi aims to sign up 20 countries by 2030. Even France now accepts UPI payments at landmarks like the Eiffel Tower and Galeries Lafayette.
German savings banks (Sparkassen) have partnered with BNY Mellon to pilot Crossmo, a new solution for low-cost international money transfers outside the EU. Currently being tested at two local savings banks, the initiative enables customers to send cross-border payments of up to €3,000 with fees reduced from €22 to €5.50—an 75% cost reduction. The project aims to help savings banks compete with fintech players like Revolut and Wise by offering more affordable remittances, particularly for migrant communities sending funds to families abroad. A broader rollout is expected in the coming months.
Michel’s take: “This could be good news for migrant workers and refugees sending money to their families. Let’s hope the test will be successful. From a European point of view, it is a pity that the German Sparkasse need an American partner to reach this objective.”
The Financial Stability Board published its 2025 Consolidated Progress Report on the G20 Roadmap for enhancing cross-border payments. While significant policy milestones have been achieved, including ISO 20022 harmonization, recommendations on bank/non-bank supervision, and governance frameworks for fast payment system interlinking, these efforts have not yet translated into tangible improvements for end-users globally. The Key Performance Indicators show only slight improvements since 2023, making it unlikely that the 2027 targets will be fully achieved without accelerated action.
The report highlights persistent challenges across all market segments: remittance costs remain sticky at 6.4% (vs. 3% target), with Sub-Saharan Africa still the most expensive region; retail payment speed has actually deteriorated; and significant regional disparities persist. The FSB emphasizes that the key challenge now is implementation, moving from agreed international policies to real-world changes at the national level. This requires stronger technical assistance, private sector engagement, and jurisdictional action to adopt harmonized standards, areas where Luxembourg’s inclusive finance ecosystem, can play a vital role in bridging the policy-to-practice gap.
Michel’s take: “It was certainly an over ambitious target, and it was worth being ambitious, but even if missing, financial institutions could have done better.”
The UK Financial Conduct Authority published a comprehensive research note on open banking and open finance, commissioned from KPMG and Europe Economics to inform the UK’s strategic framework for open finance. The report confirms that open banking continues to grow steadily in the UK, establishing a foundation for innovation and competition driven by practical use cases and increasing consumer trust. However, it also identifies significant challenges that must be addressed in the transition to open finance, including outdated technology systems, inconsistent data standards, low consumer awareness, and critical questions around data reciprocity, technical readiness, and systemic safeguards.
The FCA emphasizes that developing a coherent regulatory framework for open finance will require early alignment across regulators, commercially viable incentive structures, and investment in shared infrastructure. The report proposes a strategy balancing innovation with consumer protection and market stability. Next steps include launching TechSprints focused on SME finance and mortgages in autumn 2025, establishing a future entity to become the UK’s primary standard-setting body for open banking APIs, and collaborating internationally on Project Aperta to advance open finance interoperability. The FCA aims to publish a comprehensive open finance roadmap by March 2026, aligning with the UK Government’s National Payments Vision, offering valuable lessons for other jurisdictions, including Luxembourg, as they develop their own digital finance strategies.
Paytm has launched India’s first AI-powered Soundbox payment device specifically designed for small and medium enterprises. While more basic than solutions available to larger entities, it represents an excellent tool allowing SMEs to leverage new technical possibilities at reasonable cost, ensuring they remain included in increasingly sophisticated financial systems.
Optasia, a South African company, is offering innovative digital lending solutions with clear contributions to financial inclusion.
Michel’s take: An excellent article examining the balance between financial inclusion objectives and regulatory requirements in the Luxembourg context.
InFiNe members are encouraged to share relevant news and insights with the team. Send us your insights at contact@infine.lu to contribute to future editions.
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