Settlement & FX
What is FX spread?
The FX spread is the difference between the mid-market exchange rate and the rate actually applied to a payment. It is where much of the real cost of a cross-border payment hides — often larger than the stated fee. Tight, transparent spreads are a core lever for reducing total cost on a corridor.
Each intermediary in a correspondent chain can mark up the rate, so the recipient receives less than the mid-market conversion implies. Measuring effective cost per corridor means counting spread plus fees, not the headline fee alone.