This month’s new developments in cross-border payments and correspondent banking.

In the latest Global Correspondent Banking Monitor, we break down the latest developments shaping cross-border payments and correspondent banking worldwide. This month, we cover the Federal Reserve’s delay of ISO 20022 for Fedwire, the rising demand for cross-border payments and streamlined solutions, China and Indonesia’s QR code payment integration, and strategic corporate partnerships reshaping global transactions. We also look at HSBC’s abrupt shutdown of its Zing app and what it signals for banks competing with fintech disruptors. Read last month’s edition here.

Read on for the key insights and takeaways for community financial institutions navigating the evolving correspondent banking landscape.

1. Fed Delays ISO 20022 Implementation for Fedwire to July 2025

The Federal Reserve has delayed the transition to the ISO 20022 messaging standard for domestic Fedwire Funds Service from March 10 to July 14, 2025. This change follows feedback from industry participants requesting additional time to complete internal testing and ensure a smooth transition. While significant progress has been made, the Fed stated that the extension will help financial institutions finalize their readiness for the new standard.

However, the ISO 20022 deadline for cross-border payments via SWIFT remains November 2025. Community banks handling international payments will still need to meet that timeline, even as the domestic Fedwire transition is pushed to July.

Correspondent Banking Takeaways

• Two Different Deadlines – The July 2025 deadline applies only to domestic Fedwire transactions, while the November 2025 deadline remains unchanged for cross-border payments via SWIFT.
• Extended Timeline for Fedwire Prep – Banks processing domestic high-value payments now have four extra months to complete system upgrades and testing.
• No Delay for International Payments – Institutions handling cross-border transactions must continue preparations for the November 2025 SWIFT deadline, ensuring compliance with the global transition.
• Strategic Opportunity for Community Banks and CUs – The richer data capabilities of ISO 20022 can improve transparency and efficiency in both domestic and international payments. Banks should use this transition as an opportunity to refine correspondent banking relationships and enhance their payment operations.

Read our ISO 20022 Guide for more on how community financial institutions can beat the November deadline: 

 

ISO 20022: The Ultimate Guide for Community FIs

2. Cross-Border Payments Are Hot. Can Community FIs Keep Customers Loyal?

A new report from Visa reveals that cross-border payments are surging and expected to reach $250 trillion by 2027, fueling a growing demand for end-to-end correspondent banking solutions that streamline processes and address the diverse needs of global consumers. 

The survey of 6,500 consumers in 13 countries shows that customers use multiple methods for e-commerce purchases, remittances, and travel. Yet, they are not settled on a go-to provider. While 77% of respondents use multiple payment methods, 66% say they prefer a single, reliable provider that can deliver speed, security, and simplicity. 

Correspondent Banking Takeaways

• Cross-Border Payments Are Expanding – Demand for international transactions continues to rise, presenting opportunities for banks and CUs to offer more expansive payment solutions.
• Loyalty is in Flux – Many consumers and businesses switch providers due to pricing, speed, and user experience, but prefer to consolidate their transactions.
• Opportunity for Community Banks and CUs – By leveraging tech-forward and more comprehensive correspondent banking solutions, community banks can enhance their cross-border offerings and retain more customers.

Read our blog: Don’t think your customers are sending cross-border payments?  Think again.

3. China and Indonesia Strengthen Cross-Border QR Code Payments

China’s UnionPay International Co. Ltd. has joined forces with the Indonesia Payment System Association (ASPI) to integrate their separate QR code payment systems, marking a significant step toward eliminating barriers in cross-border digital transactions between China and Southeast Asia. This collaboration ensures that visitors from both countries can conveniently scan QR codes to allow them to access both Chinese and Indonesian online payment services. 

This follows similar QR interoperability partnerships that UnionPay established with the central banks of Vietnam, Laos, and Malaysia. 

Correspondent Banking Takeaways

• Faster, More Efficient Transactions: By harmonizing QR code payment systems, the initiative is expected to lower transaction costs and accelerate settlement times for both businesses and consumers between China and other Southeast Asian countries.
• Evolving Correspondent Banking Models: As seamless, real-time payment corridors expand, traditional correspondent banking practices are shifting towards digital, direct currency exchange solutions.
• Global Implications: While this effort targets the Asian market, it reflects a broader global trend toward digitizing cross-border payments, potentially paving the way for new automated foreign exchange solutions.

Read more about Acceleron’s automated digital correspondent banking services for community financial institutions: 

 

Automating International Wire Transfers: Boosting Efficiency for Community Banks

4. Market Moves: Strategic Alliances Transforming Cross-Border Payments

The cross-border payments landscape is experiencing continued growth as three major partnerships emerge to enhance digital payment infrastructures and global financial connectivity. E-Enterprise has joined forces with PayPal to expand digital payment options in the UAE, aiming to boost financial accessibility for both businesses and consumers. In addition, StoneX has collaborated with Fiserv to integrate its global payments network with Fiserv’s advanced banking technology, offering enhanced cross-border payment capabilities for financial institutions. Lastly, Ace Money Transfer has partnered with Mastercard to allow its customers to make transfers to India and other countries in the Single Euro Payments Area (SEPA) zone.

Correspondent Banking Takeaways

• Partnerships Drive Innovation: The collaborations between E-Enterprise and PayPal, StoneX and Fiserv, and Ace Money Transfer and Mastercard underscore how strategic alliances are critical to modernizing cross-border payment infrastructures.
• Enhanced Global Connectivity: These partnerships facilitate more efficient digital payment options and seamless international transactions.

Read about Acceleron’s partnership with Atlantic Community Bankers Bank and how it’s helping community banks leverage international payments: 

 

Partner Spotlight: Atlantic Community Bankers Bank

HSBC Shuts Down Zing App

In a notable shift, HSBC has decided to shut down its Zing mobile app — a cross-border payments solution meant to compete with fintech rivals Wise and Revolut — just one year after its launch. Citing shifting market conditions and a strategic realignment, HSBC's decision highlights the challenges traditional financial institutions face in competing with agile fintech solutions in the cross-border payments arena. 

This follows on the heels of other big bank closures of fintech offshoots such as Barclays’ mobile payments service Pingit, and NatWest’s digital bank Bó.

Correspondent Banking Takeaways

• Challenges in Consumer-Facing Innovations: HSBC’s exit from the digital consumer payments space with Zing underscores the costs and difficulties legacy banks face when trying to launch a standalone digital product.
• Strategic Recalibration: The shutdown reflects the need for traditional banks to differentiate their digital strategies when trying to compete directly with fast-growing startups. Instead of building standalone apps, banks may consider leveraging existing infrastructure and partnerships to enhance their services efficiently.

Find out about how Acceleron can quickly augment community FI correspondent banking offerings through pre-integrations with existing payments platforms — eliminating extra technical lift and cost. 

Acceleron builds patented software that allows community banks and credit unions to conduct cross-border payment transactions profitably through a foreign exchange marketplace. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, Acceleron helps small banks generate non-interest income and compete more effectively with high-fee big banks. Our digital correspondent banking solutions and international payments automation integrate seamlessly with top payments platforms, ensuring quick API integration for banks.  

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