Kanishka NaikFintech companies have entered cross-border payments by building closed-loop networks that bypass parts of the traditional correspondent banking chain, offering faster speeds, lower costs, and greater transparency.
The G20 Roadmap for Enhancing Cross-Border Payments, coordinated by the Financial Stability Board and the Bank for International Settlements, sets targets for 75% of retail payments to be credited within one hour and cost transparency to be achieved by 2027.
ISO 20022, a common financial messaging standard, is central to improving cross-border payment interoperability. SWIFT is migrating its member institutions to ISO 20022, and both FedNow and the RTP network in the U.S. are built on this standard.