Unlocking last mile speed in cross-border payments

Cross-border payments have improved significantly in recent years. Today, 75% of payments travelling over the Swift network reach beneficiary banks within just 10 minutes. This progress – aligned to the G20 goals for cross-border payments – reflects a sustained investment in infrastructure, standards and connectivity.

Yet the experience for end users remains uneven. Data from Swift shows on average, the international leg of a payment – the part where it moves between financial institutions across borders – accounts for less than 20% of the overall journey. Around 80% of total processing time is spent in the ‘last mile’: the stage after the payment has reached the final financial institution that holds the recipient’s account or wallet, where funds are processed, checked and credited.

This matters because faster rails alone cannot deliver a step change in cross-border payment speed. Whether a payment travels over the Swift network or through another mechanism, it can still be slowed by the same structural frictions once it reaches the final financial institution. Meaningful progress depends on addressing the last mile, where payments are processed, checked and credited to the recipient.

Understanding where payments slow down

Swift’s latest research focuses on this last mile, examining the conditions and processes that influence how quickly funds are credited once they arrive.

The findings show that delays are rarely caused by a single issue. Instead, they reflect a set of structural frictions that vary across markets and affect how payments are processed at the beneficiary stage.

To help the industry better understand and address these frictions, Swift has developed the Payment Optimisation Index and Playbook. Together, they provide a data-driven view of where delays occur and practical guidance on how to improve payment performance in the ‘last mile’.

Structural friction in the last mile

Our research identifies five areas of structural friction that shape how payments are processed and credited. Each has a measurable impact on how quickly funds are made available to the beneficiary.

• Regulatory requirements determine what financial institutions must do before cross-border payments can be released to beneficiaries. Where rules are clear and embedded into automated processes, payments move efficiently. When they’re fragmented or rely on manual checks, they introduce delays and reduce predictability.
• The capital and foreign exchange environment shapes how easily funds can be converted and credited in local currency. Market structures, policy frameworks and liquidity conditions all influence how quickly financial institutions can release funds to beneficiaries.
• Adherence to standards reflects how consistently financial institutions use common data formats and operating practices. High-quality structured data and aligned operating hours support straight-through processing, while fragmented standards or inconsistent implementation can lead to manual intervention and delays.
• Risk and control factors influence how financial crime checks are applied to cross-border payments. Well-calibrated, risk-based controls allow routine payments to be processed efficiently, while high volumes of alerts or manual reviews can slow processing and create variability in crediting times.
• Lastly, domestic infrastructure defines how effectively local payment systems support the final stage of cross-border transactions. Markets with modern, real-time payment rails can credit funds more quickly once checks are complete, while delays are more likely where systems rely on batch processing or have limited interoperability.

From insight to action

The findings show that improving cross-border payments does not depend only on new infrastructure. Faster rails are important, but they do not remove the frictions that arise around data, regulation and local market practices.

The greatest gains often come from improving how payments are processed after they arrive – by enhancing data quality, aligning standards and reducing avoidable manual intervention. Necessary policy and regulatory controls also have a significant role to play: how they are designed and implemented can materially affect payment processing speed.

Thankfully, addressing these challenges doesn’t require entirely new systems. Targeted improvements in data quality, standards and coordination can significantly enhance payment performance, particularly when policy and regulatory requirements are designed and implemented in ways that support efficient processing.

And as the industry works towards the G20 goals, unlocking these friction points will be key to delivering faster and more consistent cross-border payments.