Modernisation of cross-border payments: operational challenges and monetary sovereignty

International financial flows are being reshaped by regulatory changes and technological innovation. In the October 2026 edition of La Lettre du Trésorier, Olivier Hollette and Huyen de Gouttes, experts at Natixis CIB, analyse the changes under way. From the widespread adoption of ISO 20022 and the growth of instant-payment schemes to the exploration of blockchain, efforts to improve cross-border payments must meet two objectives: operational efficiency and monetary sovereignty.

The longstanding frictions of international cash management

For corporate treasury teams managing flows in multiple currencies, traditional payment channels still present significant challenges, largely because of the correspondent banking model. Each intermediary adds costs, processing time and compliance checks (AML/KYC), which may be duplicated. Payment errors caused by incorrect bank details are another risk. Regulatory fragmentation also requires companies to navigate complex local requirements, such as the purpose codes mandated in certain countries, including India, South Africa and the Philippines.

The G20 roadmap and the role of ISO 20022

Launched in 2020 under the aegis of the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructures (CPMI), the G20 programme focuses on four areas: speed, cost, transparency and access. Without binding global governance, meeting the targets initially set for 2027 is proving difficult. The migration of financial messages from MT to MX formats under the ISO 20022 standard provides an essential technical foundation for harmonising payment information. The migration on the SWIFT network began in March 2023 and was completed in November 2025. The new format supports richer, standardised data, including LEI identifiers and detailed invoice information, helping to reduce false positives in screening and streamline straight-through processing (STP).

Optimising existing infrastructure and connecting instant-payment systems

Market participants are also modernising existing systems. Since the launch of SWIFT gpi in 2017, fee transparency has improved, and most payments are processed quickly. In the first quarter of 2026, 91% of global payment flows were credited within 24 hours. Data pre-validation solutions and the European Verification of Payee (VoP) scheme are also helping to improve reliability. In the euro area, the EPC’s One-Leg Out Instant Credit Transfer (OCT Inst) scheme, which came into effect in October 2025, enables local infrastructures such as RT1 and Iberpay to connect with international payment flows. To extend these connections globally to other national systems, including PIX in Brazil, NPP in Australia and UPI in India, SWIFT introduced a standardised service-level agreement framework in June 2026.

Digital assets, blockchain and sovereignty issues

Alongside traditional financial infrastructure, decentralised technologies are opening up new possibilities for settling interbank transactions and managing intra-group liquidity. More than 40 international banks are collaborating on initiatives such as Agorá and SWIFT Ledger, which use shared ledgers to test 24/7 settlement. Tests involving six major currencies were successfully carried out in 2026. Meanwhile, the stablecoin market remains overwhelmingly dollar-denominated, with 99% of volumes accounted for by USDC or USDT. Following the entry into force of the EU’s Markets in Crypto-Assets Regulation (MiCA), coordinated banking initiatives such as the Qivalis consortium, comprising 37 European institutions, are developing regulated euro-denominated digital-asset solutions. These efforts highlight the sovereignty challenges posed by global standards.