Foreign payments are often more expensive, slower and more cumbersome than domestic payments. In November 2020, the G20 countries agreed on a five-year cooperation to improve cross-border payments. The aim of the cooperation is to address some of the problems associated with cross-border payments. According to the latest follow-up reports (Report 1 and Report 2) of the Financial Stability Board (FSB), progress has been made in the priority areas, but the work done so far is not sufficient. More work is needed to achieve the quantitative targets. Furthermore, some measures will take time to produce visible results.

As part of the G20 cooperation on cross-border payments, targets have been set for the cost of cross-border payments. By 2027, the cost of cross-border payments must not exceed 1 per cent of the payment value for retail payments and 3 per cent of the amount sent for a remittance. According to a study by the Riksbank, the cost of foreign payments via the major banks from Sweden is higher than the G20 target. This applies to card payments, credit transfers and remittances. It is mainly the exchange rate mark-up and high fixed charges per payment that contribute to the high costs. For example, the exchange rate mark-up alone averages just over 3 per cent for card payments in EEA countries. The same publication notes that there are some other institutions in Sweden that offer foreign payments at costs close to the G20 target.