In this month’s Global Correspondent Banking Monitor, we’re tracking major shifts in the international payments landscape. From new tariffs reshaping cross-border flows to Swift’s firm deadline for ISO 20022 compliance, the pressure is on for banks to modernize. At the same time, BRICS nations are pushing forward with a digital payment system designed to bypass Swift and reduce reliance on the U.S. dollar. Meanwhile, PayPal is expanding its global footprint — rolling out real-time transfers in the Middle East and Africa and enabling instant remittances to China. Buckle up — we’re taking you on a fast-paced tour of the latest global developments in correspondent banking. Read last month’s issue here.
President Donald Trump’s rapidly shifting tariff policies are creating significant volatility in global commerce, particularly affecting cross-border payments. While a 90-day pause on tariffs for almost 90 countries offers temporary relief, increased levies on Chinese imports and ongoing policy unpredictability are compelling businesses to reevaluate their international payment strategies. While financial institutions themselves have not seen many direct operational impacts from the tariffs yet, many are watching closely as client demand for flexible cross-border payment options and financing solutions begins to shift in response.
Community banking impacts:
Community banks should be prepared for increased volatility in international payments and shifting client needs tied to global trade uncertainty. Now is the time to evaluate how well your institution supports businesses navigating cross-border transactions, especially those reliant on predictable cash flow and timely settlements. By offering more agile international payment tools like access to multiple correspondent banks for competitive routing, hedging solutions like forward contracts, and automated wire platforms with real-time FX pricing, community banks can become vital partners in helping local businesses weather economic whiplash and maintain competitiveness abroad.
Read more about wire automation with multiple correspondent banks:
Swift has reaffirmed that all cross-border payment instructions must transition to the ISO 20022 messaging standard by November 22, 2025. After this date, Swift will cease delivering payment instructions in legacy MT formats, marking the end of the coexistence period that began in 2023. While major banks handling the majority of international transactions are largely compliant, many smaller institutions remain unprepared, with only about one-third of Swift's 11,500 member banks currently compliant.
ISO 20022 offers a richer, more structured data format, facilitating improved automation, compliance, and interoperability across payment systems. However, the transition poses challenges, especially for smaller banks that have outsourced their compliance efforts. Swift is developing contingency solutions to convert legacy messages post-deadline, but these are intended as temporary measures. The shift to ISO 20022 is expected to enhance real-time processing capabilities and align with global payment infrastructures like FedNow and The Clearing House's RTP network.
Community banking impacts:
Community banks must prioritize their transition to ISO 20022 to ensure uninterrupted participation in global payment networks. The new standard's structured data format enhances payment transparency and efficiency but requires significant updates to existing systems and processes. Institutions that delay may face operational disruptions and increased costs associated with last-minute compliance efforts or reliance on Swift's temporary conversion services. Proactive planning and investment in necessary technology upgrades are essential to meet the November 2025 deadline and maintain competitiveness in the evolving payments landscape.
Read our ultimate ISO 20022 guide for community financial institutions, which includes implementation tips:
Russia is leading the BRICS's initiative to establish a cross-border payment system utilizing national currencies and digital assets, aiming to diminish reliance on the U.S. dollar. Finance Minister Anton Siluanov emphasized the need for financial innovations within the BRICS framework, including a decentralized payment system to facilitate trade among member nations— Brazil, Russia, India, China, and South Africa — by bypassing Western-controlled financial channels such as SWIFT.
Faced with Western sanctions that have limited Russian banks' access to SWIFT, BRICS is fast-tracking the rollout of BRICS Pay, a decentralized platform aimed at enabling cross-border trade using member nations' local currencies. Spearheaded by Russia and China, the initiative also features a digital asset component to support international transactions. Although a common currency has not been established, the system may pave the way for broader use of digital versions of the yuan and ruble in global commerce.
Community banking impacts:
The advancement of BRICS's digital cross-border payment system signifies a potential shift in the global financial landscape, challenging the dominance of the U.S. dollar. Community banks should monitor these developments, as they may influence international trade dynamics and payment systems. Staying informed about alternative payment infrastructures and digital asset platforms will be crucial for community banks to adapt and support clients engaged in international commerce.
4. PayPal Expands Cross-Border Payment Reach with TerraPay and Tencent Partnerships
PayPal is making major moves to expand its global cross-border payment capabilities through two new partnerships— one with TerraPay in the Middle East and Africa (MEA), and the other with Tencent’s Tenpay Global to reach users in China. In partnership with TerraPay, PayPal aims to enhance real-time fund transfers across MEA by allowing users to link mobile wallets or bank accounts to PayPal, fostering greater financial inclusion in the region. The initiative leverages TerraPay’s interoperable infrastructure and responds to a growing consumer demand for digital wallet usage in international payments.
Simultaneously, PayPal’s remittance service Xoom has teamed up with Tenpay Global, enabling near-instant fund transfers to Weixin Pay (WeChat Pay) users in China. This service is now live for senders in the U.S., Canada, and Europe, with plans to expand further. Funds can be delivered to a user’s digital wallet or linked bank account within minutes. Together, these partnerships underscore PayPal’s global ambition to simplify international money movement and offer seamless digital financial experiences across both developed and emerging markets.
Community banking impacts:
These twin initiatives reflect a broader trend: users increasingly expect fast, low-friction, digital-first cross-border payments, whether sending money to a business in Africa or a family member in China. For community banks, the implications are clear. To stay competitive, especially with customers engaged in international commerce or remittances, banks must prioritize modernizing their own cross-border offerings. Partnering with fintechs, embracing automation in their payments ecosystems can help community banks meet evolving expectations.
Read about how to increase non-interest income through international wires automation:
LoanPro, a modern credit platform, and NovoPayment, a financial infrastructure provider, have announced a partnership aimed at enhancing access to credit across Latin America. This collaboration integrates LoanPro’s credit ledger and origination, servicing, and collections technology with NovoPayment’s API-based issuing processing. The combined solution offers financial institutions and fintechs an end-to-end infrastructure to support a wide range of credit and lending products.
The partnership addresses the challenge of scaling credit products in a region where, despite progress in financial inclusion, millions still lack access to modern lending solutions. By leveraging LoanPro’s Transaction Level Credit product, institutions can assign unique repayment terms, fee structures, and interest rates to individual transactions, enabling personalized credit offerings. NovoPayment’s cloud-native platform further supports these capabilities with real-time processing, robust security, and an API-first approach, facilitating low-latency transactions and automated failover.
Community banking impacts:
For community banks, this partnership exemplifies the importance of modernizing credit infrastructure to meet evolving customer needs. By adopting similar integrated solutions, banks can offer more personalized and scalable credit products, enhancing their competitiveness in the digital age. Embracing API-driven platforms and real-time processing capabilities will be key to expanding credit access and fostering economic growth within their communities.
The Acceleron API docs are now live on our website - it’s a step-by-step guide to quoting and processing international wire payments.
Acceleron builds patented software that allows community banks and credit unions to conduct international payment transactions profitably through a correspondent banking marketplace. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, Acceleron helps community financial institutions generate non-interest income and compete more effectively with high-fee big banks. Our solutions integrate seamlessly with top payments platforms, ensuring quick implementation and smooth operation.
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