LexisNexis finds that failed cross-border payments are costing financial institutions revenue and operational resources.
Three-quarters of financial institutions lose up to US$5 million a year in customer revenue due to failed payments, according to a new study from LexisNexis Risk Solutions.
The True Impact of Failed Payments 2026 study also found that only 2% of financial institutions achieve near-100% straight-through processing (STP) for cross-border payments, while just 9% report an STP rate above 95%.
The study surveyed 150 payments executives at financial institutions across North America, Europe, the Middle East and APAC. It found that 37% of institutions incur more than US$20 in costs for each failed or delayed payment, while typically recovering between US$11 and US$15 through fees.
Many payment failures are linked to basic data issues. Incorrect beneficiary information accounts for 21% of failures, while account number issues and incorrect bank details each account for around 15%.
The impact also extends to customer relationships. One-third of financial institutions report losing between 2% and 5% of customers through failed payments, while 90% say strong STP rates have a positive impact on customer retention.
“Failed payments are a key efficiency focus for financial institutions that aim to drive straight-through processing and further introduce ISO20022 payment message structures within their systems,” said Vijay Nagarajan, Director of Payments Efficiency at LexisNexis Risk Solutions.
Among financial institutions that have implemented payment data validation solutions, two in five report improvements in STP of more than 25%
Stay updated on crypto and AI by following our socials.
