The Opportunity
The surging demand for swift, transparent cross-border transactions isn’t merely driven by ecommerce and retail remittances; it’s also fueled by corporations seeking efficient fund movements. Forbes projects the cross-border payments market to skyrocket to $250 trillion by 2027, propelled by robust trade, burgeoning travel and tourism, and steadfast G20 commitments.
- Cross-border e-comm will surpass $3.3 trillion by 2028 – Juniper
- 75% SMEs are planning to expand their international operations – Mastercard
- Cost of a $200 remittance is targeted to reach 3-5% – G20 commitment
- By 2030, the B2B cross-border payments market could reach $56.1 trillion – FXC
Seen together, these numbers paint a vivid picture of the opportunity for banks to become key players in this space.
Real-Time Payments Proving Pivotal
Real-time payments (RTP) could prove to be the silver bullet that banks could embrace to succeed.
2 primary models that bear critical significance
Bi-lateral cross-border payments
- Several countries are linking their RTP systems through bilateral agreements.
- Linking national fast-payment systems to reduce intermediaries and lower money transfer costs.
- APAC leading the market.
Multi-lateral cross-border payments
- A multilateral platform spans multiple jurisdictions as a cross-border payment system.
- Complement or replace traditional correspondent banking relationships.
Finacle Payments
The cross-border payments offering from Finacle Payments is a cloud native, microservices driven, highly available and scalable platform; and supports all models of cross-border RTP and has been developed inhouse. We have wide experience assisting banks in their cross-border payments journey.
- Successfully helped banks complete their cross-border payments through SWIFT on CBPR+ MX journey.
- As part of the bi-lateral cross-border payments infrastructure; Finacle Payments is live on rails such as Hong Kong cross-border and is ready for Australia NPP cross-border payment.
- Supports infrastructure for other bi-lateral models such as UPI-PayNow, PromptPay-DuitNow etc.
- Multilateral cross-border networks like SEPA Credit Transfers, SEPA Direct Debits, SEPA Instant, Target 2, TIPS implemented for clients.
- Infrastructure can support cross-border frameworks such as GCC BUNA, BIS Nexus, Visa B2B, Visa Direct, Mastercard Send, Partior, Ripple etc.
