The cross-border payments landscape is shifting faster than most people realise. If you run a small payment institution (SPI), authorised payment institution (API), or money service business in the UK, the next 12 months will fundamentally change how you operate and compete.
Industry data shows three big things happening right now: SMEs are demanding near-instant settlement, the ISO 20022 migration is entering its final phase, and regulatory targets set by the G20 are forcing the entire industry to rethink how money moves internationally.
Here’s what actually matters for your business.
The Speed Expectation Has Changed
The days of waiting three to five days for international payments are ending. Small businesses now expect cross-border transfers to settle within hours, not days.
According to the Financial Stability Board’s latest progress report, the G20 set a target for 75% of cross-border retail payments to be credited within one hour by the end of 2027. They’re not going to hit that target on time, but the market is moving that direction anyway.
SWIFT launched its new Payments Scheme in H1 2026, built specifically for consumers and SMEs. The scheme promises upfront fee transparency, full-value delivery (no surprise deductions), and faster settlement times where systems allow it.
What this means for small payment firms: if you’re still running a SWIFT-only model without real-time or near-real-time rails, you’re going to lose business. Your clients don’t care about your tech stack limitations. They care that their supplier in Poland got paid today, not next week.
ISO 20022 Isn’t Optional Anymore
November 2026 marks a critical deadline that most small payment firms aren’t talking about enough. After that date, you cannot use unstructured postal addresses in cross-border payment instructions. Every payment must include at minimum a structured or hybrid address with the town name and country as separate data elements.
The ISO 20022 standard has been rolling out since March 2023, but November 2026 is when the training wheels come off. Payments that don’t comply will be rejected.
Why does this matter? Because ISO 20022 isn’t just about address formats. It’s about richer data, better tracking, and straight-through processing. The standard enables you to include more remittance information, better party identification, and clearer transaction tracking from end to end.
For small payment institutions, this creates both a challenge and an opportunity. The challenge is technical compliance. The opportunity is that better data means better customer service, fewer manual interventions, and lower operational costs.
If your payment initiation systems can’t handle structured addresses yet, you need to fix that before November 2026. No exceptions.
The G20 Targets Are Reshaping Pricing
In 2021, the G20 set ambitious targets for cross-border payments by the end of 2027:
- Cut the global average cost of retail payments to no more than 1%
- Achieve 75% settlement within one hour
- Improve transparency on fees and FX rates
- Expand access to cross-border electronic payments
The October 2025 progress report from the Financial Stability Board was blunt: they’re not going to hit these targets on time. Current data shows business-to-person, person-to-business, and P2P payment costs still exceed 2%. B2B costs for micro, small, and medium-sized entities average 1.6%.
But here’s what matters for you: even though they won’t hit the targets by 2027, the market is moving that direction anyway. Wise reported 22% growth in cross-border volumes in FY2025, reaching 185.2 billion, competing directly on transparent pricing and faster settlement.
If you’re running a small payment institution with opaque FX spreads or hidden correspondent bank charges, you’re competing against firms that publish their exact fees upfront. The FCA’s Consumer Duty rules already require you to show the exact amount the recipient will receive and any markup above the mid-market rate.
Transparent pricing isn’t a nice-to-have anymore. It’s table stakes.
Multi-Rail Strategy Becomes Standard
The most successful payment firms in 2026 won’t rely on a single payment rail. They’ll offer multiple options depending on speed, cost, and corridor.
SWIFT for certain corridors, local payment systems for others, and potentially stablecoin rails for specific use cases (especially if you operate in emerging markets or serve crypto firms needing fiat on-ramps).
The cross-border payments market is expected to grow from 212.55 billion in 2024 to 320.73 billion by 2030. B2B payments make up 72.6% of that market by volume. Your SME clients are increasingly selling internationally via e-commerce platforms, and they need payment options that match their customers’ preferences.
This means if you’re only offering one way to send money abroad, you’re leaving money on the table.
Stablecoins Are No Longer Experimental
The US GENIUS Act passed in July 2025 created a regulatory framework for stablecoins, and similar laws are emerging worldwide. Visa now supports more than 130 stablecoin-linked card programs in over 40 countries, and some estimates suggest the stablecoin market could reach 4 trillion by 2030.
For small payment institutions, stablecoins create three opportunities:
- Faster settlement for cross-border B2B payments, B2C payouts, and P2P remittances
- Lower costs in specific corridors where traditional rails are expensive
- 24/7 availability without waiting for banking hours in different time zones
You don’t need to become a crypto firm overnight, but if your clients are asking about stablecoin settlement and you have no answer, you’re behind the curve.
What Small Payment Firms Should Do Now
The firms that will thrive in the next 12 months are the ones taking action on these trends today:
Fix your ISO 20022 compliance. November 2026 is not far away. Make sure your payment initiation systems support structured or hybrid addresses and can handle the richer data fields.
Build transparency into your pricing. If you’re still hiding FX spreads in fine print, stop. Show your clients the exact fee, the exact exchange rate, and the exact amount the recipient gets. Your competitors already do.
Add at least one alternative rail. SWIFT alone isn’t enough. Look at local payment systems, instant payment networks, or partnerships with fintechs that can offer faster settlement in your key corridors.
Track real-time status. Your clients expect to see where their payment is at any moment. If you can’t offer end-to-end tracking with status updates, that’s a competitive disadvantage.
Consider stablecoin options. You don’t need to rush into this, but understand the use cases and regulatory landscape. Some of your clients will ask for it in 2026, especially if they operate in high-cost corridors or need instant settlement.
The firms that ignore these trends will find themselves slowly losing clients to competitors who move faster. The ones that act now will be positioned to capture growth as the cross-border payments market expands.
The infrastructure changes happening in 2026 aren’t theoretical. They’re real, they’re mandatory in some cases (ISO 20022), and they’re changing what SME clients expect from their payment providers.
You can either adapt to these trends or get left behind. The choice is yours.
FAQs
What is ISO 20022 and why does it matter for small payment firms?
ISO 20022 is the global standard for financial messaging that replaces older formats with richer, more structured data. It matters because it enables better tracking, fewer errors, and straight-through processing. After November 2026, payments without structured address data will be rejected.
Will the G20 actually hit its 1% cost target for cross-border payments?
No, the Financial Stability Board confirmed in October 2025 that the industry won’t meet the 2027 targets on time. However, the market is still moving toward lower costs and faster settlement regardless of the official timeline.
Do small payment institutions need to offer stablecoin settlement?
Not immediately, but you should understand the use cases. If your clients operate in high-cost corridors or need instant settlement outside banking hours, stablecoins can solve real problems. The regulatory framework is now clear enough that this is becoming a legitimate option.
How fast should cross-border payments be in 2026?
The G20 target is 75% of payments settled within one hour by 2027. While the industry won’t hit that globally, many corridors already offer near-instant settlement through local rails and new schemes like SWIFT Payments Scheme. Your clients increasingly expect same-day or next-hour settlement.
What happens if we don’t comply with ISO 20022 address requirements by November 2026?
Your payments will be rejected. After November 2026, all cross-border payments must use structured or hybrid addresses with at minimum the town name and country as separate data elements. This isn’t optional.
Is it worth investing in multi-rail payment options for a small firm?
Yes. Single-rail strategies limit your ability to compete on speed and cost. Even adding one alternative rail (local payment systems, instant networks, or partnerships) gives you more flexibility to serve different client needs and corridors.
How do we know if our pricing is transparent enough?
If a client can’t see the exact fee, exact exchange rate, and exact recipient amount before confirming a transfer, your pricing isn’t transparent. FCA Consumer Duty rules already require this level of clarity, and your competitors are using transparency as a competitive advantage.