International Payments: Why the West Outpaces the East
European SMEs face a simple reality: the speed of international payments is far from standard. According to the latest edition of iBanFirst's "Speed of Payment 2025" white paper, transfers to the United States and the United Kingdom are credited within a few hours, whereas transactions to China or Hong Kong remain significantly slower. Behind these differences in payment execution speed are technical, geographical, and regulatory factors, demonstrating that speed depends as much on the global banking infrastructure as on timing—and sometimes geopolitics.
Why Payments to the US Are Fast and Those to China Are Much Slower
The study is based on the analysis of nearly 190,000 SWIFT payments made in 2024 by European SMEs and « small multinationals. » The first notable finding is that 64% of payments to the United States and the United Kingdom are received in less than two hours, compared to just 12% to China and Hong Kong.
Geography plays a significant role. The European time zone aligns better with US and UK banking closings than with those in Asia. However, time zone differences do not account for everything. In China, stricter compliance processes, increased regulatory checks, and sometimes less automated banking systems slow down the arrival of funds, even when these funds are sent in traditionally liquid currencies.
The study also challenges a common misconception: sending a payment in the local currency does not guarantee faster execution. Sending CNY to China is not faster than sending USD—and sometimes it's even the opposite. For European businesses, this means that the choice of currency should be driven by a foreign exchange strategy, not a speed strategy.
The US dollar remains central. It represents 58% of international payments by European SMEs. This structural weight partly explains the fluidity of transatlantic corridors: the SWIFT infrastructure and global USD liquidity are such that payments move with fewer frictions.
The Last Mile
Beyond the chosen corridor, the actual speed of a payment also depends on the number of steps it undergoes. On average, an international transfer initiated in Europe goes through 1.9 intermediary banks before reaching its destination. The more complex the route, the higher the likelihood of delays.
However, the study highlights a surprising reality: 90% of international payments reach the beneficiary bank in less than an hour. The delay occurs afterward. Only 43% of the funds are actually credited to the recipient's account within that same timeframe. This delay stems from the « last mile, » meaning the internal processing carried out by the beneficiary's bank.
In many regions around the world, the processing of these payments is not fully automated. Some banks still employ manual processes, involving human checks, document verification, and internal approvals. As a result, payments remain stuck at the final stage, sometimes for several hours, and occasionally for several days if they coincide with a banking weekend.
International banking calendars add to this complexity. In the Middle East, for instance, many banks are closed on Friday and open on Sunday. A transfer sent on a Thursday afternoon in Europe may only begin to be processed on Sunday. This delay complicates the predictability of timelines for businesses and can impact cash flow management.
A Strategy of Timing, Currencies, and Tools
The iBanFirst report goes beyond merely describing the frictions; it identifies five key operational levers to optimize the speed of international payments.
1. Avoid end-of-day transfers. A payment initiated late in the afternoon is more likely to be postponed to the next day, or even to Monday if done on a Friday. The potential gain: a full day of processing.
2. Prioritize the most liquid currencies. Using USD, EUR, or GBP minimizes delays, especially when intermediary banks already have significant reserves and processing automation for these currencies.
3. Utilize multibank solutions. Engaging multiple banking partners allows you to take the fastest routes based on currency-destination pairs.
4. Implement real-time tracking. SWIFT tracking tools enable you to immediately identify where a payment is slowing down, facilitating swift resolution of blockages.
5. Train finance teams. Understanding time zones, local holidays, and bank cut-off times can help avoid costly time errors.
Behind these recommendations is a message: the speed of an international payment is as much about operational discipline as it is about banking technologies. Companies that anticipate timing and master the logic of corridors gain in cash flow predictability—a crucial issue in the context of strained supply chains.
In a global trade environment marked by uncertainty, payment efficiency is no longer just a technical convenience; it is a competitive advantage.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
