Why International Payments Still Take Time And What’s Changing

Fast forward to 2026, and cross border payments can still feel quite outdated. Payments can take several days to process, fees can reduce your bottom line, and when something goes wrong, it can sometimes be difficult to know where your money is.

Have you ever sent money to an overseas vendor and found yourself refreshing your online banking app to check the status of the transfer? You’re far from alone.

Cross border payment infrastructure processes nearly $190 trillion annually, yet businesses still need better and faster ways to make payments across borders.

This is precisely where services like TranzyPay come in. They give businesses a faster, simpler, and more transparent way to make international payments. But before understanding why services like TranzyPay are needed, it is important to understand why international payments can be so difficult in the first place.

Here’s why.

The Old Pipes Are Still Running the Show

Despite the introduction of alternative payment systems, most international transactions are still conducted through correspondent banking. In simple terms, your money is transferred from one bank to another before reaching its final destination.

It is similar to a relay race, with each participant checking the sender’s details, taking a share of the fees, and sometimes choosing not to continue the transaction.

This comparison is more than just a joke. Since 2011, the number of correspondent banking relationships worldwide has fallen by nearly 25%. Some banks have stopped operating in certain countries because the cost of complying with regulations has become too high.

The Pacific Islands, for example, are experiencing financial exclusion, which has led to a $77 million World Bank project aimed at helping maintain basic banking access.

Compliance: The Invisible Traffic Jam

Every time your money moves between two banks, the transaction will likely be screened again through an anti-money laundering (AML) system. The reason is straightforward: each country or region has its own laws, risk standards, and approach to analysing data.

As a result, around 95% of AML alerts are identified as false positives, meaning legitimate transactions can still be flagged for compliance review.

Now imagine several intermediary banks involved in the same transaction, with each one carrying out its own checks. It becomes easy to see why a transfer to Lagos or Nairobi can take several days, while a domestic transfer can be completed in seconds.

The problem is not compliance itself. It is the lack of a global standard for sharing compliance information. Privacy regulations can also make it more difficult for banks to share this information with one another.

The Big Fix That’s Only Halfway Done

You’ve likely heard of ISO 20022, the new global payment standard designed to improve cross border payments by providing more detailed and structured information. Adoption looks strong, with 98% of SWIFT payment messages now using the format.

But there’s a catch. Only 13% of settlement systems worldwide are aligned with the data standards needed to make ISO 20022 fully effective. The format has been adopted, but the underlying data is not always standardized. It’s like switching everyone to smartphones while the cell towers are still using dial up.

The full benefits of ISO 20022 will only be realized when countries standardize not just the format, but also the data they send, such as addresses, purpose codes, and legal entity identifiers.

Old Governance for New Rails

Stablecoins, blockchain, and CBDCs have been receiving a lot of attention recently. International stablecoin transfers were estimated to reach $1.4 trillion in 2024.

• In 2026, SWIFT created a blockchain-based ledger with 17 banks participating in the project, while a group of 21 financial institutions is working on a USD stablecoin expected to launch in 2027.

However, technology alone cannot solve a governance problem. A USD stablecoin operating across the EU, Hong Kong, and mainland China would have to comply with three different regulatory systems, each with its own rules around transactions, investors, and access.

More than 70 countries now have domestic instant payment systems, but connecting these systems across borders still largely depends on bilateral agreements and pilot projects.

Where the True Opportunity Lies

To be honest, for businesses, paying the money isn’t usually the hardest part. What really matters is the process around it. From invoicing and approving AP to tax compliance, reconciliation, and integrating multiple ERPs, there are a lot of places where something can go wrong.

While fintech companies already manage about 50% of retail cross border payment flows, their share in SME payments is only about 20%. It’s evident that simply making payment rails faster might not be enough to close the gap. The key is to develop payment solutions that fit into the way businesses operate.

TranzyPay helps tackle this exact problem every day, working to answer one question: How can we make cross border payments faster and easier?

The era of separate cross border payment solutions is coming to an end. The future belongs to intelligent, multi-rail payments that are deeply embedded into business processes.