International Instant Payment Platforms must be data ready

The cross-border payments are one of the fastest growing transactions in the world. In 2017 the value moved was $150 trillion and by 2027 is expected to reach $250 trillion. This growth in volume is accompanied by a dramatic shortening of payment delivery from at least 24 hours to instant.

International Payments are starting to move off the 19^th Correspondent Banking network. This which modernised in the 1970s with the creation of SWIFT (11,000 banks and 1,000+ Corporates). The latest figures showed SWIFT credited funds within one hour to 51% and in one day to 92% of cross border payments being handled. Better than days or weeks in the 19^th Century but the move to millisecond is upon us. 

Instant payments are now in 70 countries. The EU has a Directive mandating instant payments and Verification of Payee (VoP) starts October 2025. In November 2025 international message format ISO 20022 will become del facto worldwide. This new format permits significant data on the payment to be sent along with the amount.

To achieve this a new reality a different type of Instant International Payment Platform is required. The Group of Twenty (G20), in 2021, proposed to improve cross-border payments focused: Speed, Access, Cost and Transparency. The 2025 UK Payment Association Manifesto added:

1.    Digital verification and regulations to include AI-driven analyses
2.    Reduce bank account fraud through data sharing enhancements

3. Accelerate adoption of open banking and reduce cross-border payment costs
4. Establish regulatory frameworks for digital assets and stablecoins

The Payment Platform, to support and safeguard instant payments, needs: 

1. 1. Data Sharing on the Bank Account in near real time
   2. Work to identify active ‘bad guys’ through international interfaces 
   3. Technology interfaces (APIs) that cause minimum internal friction
   4. Fully compliant to In-country regulations with full transparency
   5. Digital with payment tracking, 24 x7, Fiat and Crypto currency rate offerings

International Payment Costs today

Retail – The G20 goal of a target cost of 1% for payments has yet to be met the latest averages of 1.6% (business) and 2.6% (people) being reported. In the UK, bank accounts that have been defrauded the banks are now liable. The Liability is split 50/50 between the Payor and Payee bank up to £85,000 scammed amount. UK Finance reported £570 million stolen by fraudsters in the first half of 2024.

Corporates – pay for bank accounts, fees on International Payments, (often 10x+ domestic payments) and margins up to 3% of the amount being exchanges into another currency. To safeguard corporates from fraud, the inclusion of Legal Entity Identifiers (LEI) as standard in a company’s descriptor is being promoted by European Association of Corporate Treasurers. Corporates do not have any mandated reimbursement schemes as consumers.

Financial Model

International Instant Payments have advantages over Domestic Payments in there are more revenue streams. Governments and Central Banks rarely permit a charge for a domestic payment, but most accept the need for an international transfer fee. Then there is the exchange rate margin between two currencies on conversion. 

Market access can add additional fees as the time frames move to 24x7. For example, Nasdaq plan to launch 24-hour trading in 2026 while Crypto trading is already with us. The 24/7 operating model will require significant infrastructure changes for many traditional institutions but aligns with consumer expectations in a digital economy.

These new sources of revenue when buying anything worldwide are ideal to cover the cost of the New Instant Payment Platforms.

Sources:

https://thepaymentsassociation.org/the-payments-manifesto/

https://www.finextra.com/newsarticle/45589/the-payments-association-releases-recommendations-for-uk-growth-in-2025-manifesto

https://www.investopedia.com/nasdaq-plans-to-launch-24-hour-trading-next-year-11692826