Unlocking the Final Frontier in Cross-Border Payments | Opinion

A hyper-connected world requires matching channels to move money across borders quickly, securely, and transparently. Whether a small business dependent on urgent liquidity or a family remittance funding a college place, the necessity for frictionless, low-cost cross-border payments is recognized as systemically critical. 

In India - an expanding economy trading with more countries than ever before and easily the largest recipient of remittances in the world, with over USD 135 billion in inbound flows last fiscal - a safe, secure cross border infrastructure of money transfers is necessary for growth. 

Thanks to years of industry-wide collaboration and innovation, we have made remarkable progress as a community. Today, Swift’s data shows that 90% of payments sent via our network reach the beneficiary bank within an hour. 

This already exceeds the G20’s target of 75% of end-to-end payments processed within an hour by 2027.  However, to truly deliver on the promise of instant, frictionless transactions, global banking and its partners must turn their collective focus to the final leg of money’s journey: the beneficiary leg. 

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A Journey Transformed, But Not Yet Complete

The G20 roadmap, developed in partnership with the Financial Stability Board (FSB), laid out ambitious targets to improve the speed, cost, transparency, and access of cross-border payments. 

As a testament to the collective efforts of financial institutions, market infrastructures, and technology providers around the world, we are well on our way to hitting the G20’s target. The ‘in-flight’ portion of the payment journey - between the sender and receiving banks - is operating at or above target in nearly every major payment corridor. 

But as we zoom in on the final stretch, which is when the funds arrive at the beneficiary bank and are credited to the end-customer’s account, the picture changes.  

Understanding the Bottleneck

Globally, only 43% of payments are credited end-to-end within an hour. Typically, the final step introduces the most delays, as it often depends on domestic systems, local practices, and country-specific regulations. When analyzing global financial markets, common barriers to a quick beneficiary leg are as follows:

• Batch processing and limited operating hours: In some countries, payments are still processed in batches or only during business hours, creating delays when funds arrive outside those windows.

• Regulatory and compliance checks: Requirements to verify the recipient’s identity or confirm the purpose of a payment are often carried out manually, slowing things down. Sometimes these are regulatory requirements, in other cases, they may be local market practices.

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These issues are not insurmountable. In fact, many countries are already showing what’s possible. Markets with real-time domestic payment systems, 24/7 bank operations are consistently meeting or exceeding the G20’s speed target, proving that faster end-to-end processing is achievable. 

India’s domestic payment systems RTGS and IMPS already work 24*7*365 to settle local transactions. Last year, RBI governor Shaktikanta Das proposed expanding RTGS for cross-border transactions in major global currencies to accelerate access to cheaper cross-border payments and remittances. The Bank for International Settlements (BIS) is also exploring ways to align and extend the operating hours of payment systems, particularly RTGS systems, to improve cross-border payments. 

The Customer Experience Imperative

Speed is only one part of the story. Our recent research, conducted in collaboration with McKinsey, reveals that customers expect more than just fast transactions. They also want simplicity, transparency, and traceability when sending payments.

• Simplicity: Customers expect intuitive interfaces, pre-filled fields, and minimal friction when initiating a payment.

• Transparency: They want to know exactly how much the transaction will cost, including fees and FX rates, before they hit “send.”

• Traceability: Just like tracking a parcel, customers want to follow their payment journey and know when it’s been delivered.

The good news? Many of these expectations are already being met by financial institutions, with existing infrastructure. Providers that leverage tools like payment pre-validation and ISO 20022 messaging are already delivering best-in-class experiences without needing to reinvent the wheel.

Collaboration Is Key

Improving the end customer experience on both sides of a payment isn’t something any one player can solve alone. It requires coordinated action across the ecosystem — banks, market infrastructures, regulators, and technology providers all have a role to play.

For regulators and policymakers, this means reviewing local requirements that may inadvertently slow down payments and exploring ways to enable real-time processing. For banks and payment providers, it means investing in modern back-office systems, adopting global standards, and embedding transparency into customer-facing channels.

And for all of us, it means continuing to share data, insights, and best practices to raise the bar across the board.

A Once-in-a-Generation Opportunity

We stand at a pivotal moment. The foundations for fast, transparent, and interoperable cross-border payments are already in place. Now, it’s about ensuring that the domestic beneficiary leg is just as efficient as the rest of the journey.

By working together, we have an opportunity to reshape how money moves across borders. We can make this process faster, more predictable, and ultimately more aligned with what customers need. A future where businesses grow faster, families stay connected, and economies thrive.

Kiran Shetty is the CEO and Regional Head, India and South Asia at Swift.