By cross-border payments, we mean payments made between Sweden and other countries. This could be card payments when we are abroad, bank transfers to other countries when we make larger purchases or send gifts, and so-called remittances, when people in Sweden send money to relatives in other countries.

Sending money abroad is more complicated than making domestic payments. This is because it requires exchanging currency and involving banks and payment systems in more than one country. If payments are to be made quickly, the participants in the payment process need to be able to communicate with one another in an agreed format that is some form of common language, which is not always the case today (see FACT BOX – ISO20022 – New standard for payment orders). As a result of these complications, cross-border payments are often expensive, slow and intransparent (see Are payments efficient?). For instance, an account transfer between a bank account in Sweden and an account in a bank outside the European Economic Area (EEA) often costs between five and 50 per cent of the sum transferred and often takes several days.

The problems with cross-border payments being slow and expensive has been pointed out by international organisations, the Riksbank and other central banks. There are several international initiatives under way (see The Riksbank is actively participating in the international cooperation).