Page 32 - gs250602

Insights and Expertise

Solving the real issues in

cross-border payment systems

These technologies are improving speed, transparency
and reach, while lowering costs. And they're making it
easier for merchants to serve global customers without
needing to navigate layers of outdated infrastructure.
Why outdated infrastructure still causes problems

The core problem isn't just the number of payment
methods. It's the way they connect. Legacy systems often
route payments through multiple intermediaries, each
adding delays, fees and risk. That impacts merchants on
all sides, from settlement times and currency conversion
costs to customer experience and cart abandonment.

Tools powering the future
of cross-border paymen
By Zaki Farooq As global commerce expands, merchants face
PayFuture mounting pressure to streamline international
transactions. The following technologies are trans-
ross-border payments have become a bigger forming how cross-border payments are made,
part of how merchants do business, often with- helping businesses overcome long-standing chal-
out them even realizing it. From international lenges in cost, speed and transparency:
C customers at checkout to overseas suppliers or
platforms handling settlement behind the scenes, global • Real-time payment rails: Enable near-instant
payment flows are now part of everyday operations. transfers between countries, reducing settle-
ment delays.
But making those flows reliable and cost-effective is still
harder than it should be. Domestic payments have come • Open banking: Lets providers connect direct-
a long way. In many markets, transfers are instant, low- ly to customer accounts for faster, more secure
cost and easy to track. That same experience hasn't yet payments.
reached cross-border payments, where infrastructure
is still fragmented, and processes are more difficult to • Digital wallets: Offer flexible, mobile-friendly
standardize. options, which are especially vital in markets
with limited traditional banking access.
That's beginning to change. Global payments are growing
fast, with revenues expected to reach $2.3 trillion by 2028, • Blockchain and stablecoins: Introduce new
models for B2B settlement and remittance, en-
according to PCG's Global Payments Report 2025. Digital
wallets alone are forecast to account for over 40 per cent of hancing traceability and reducing intermedi-
ary fees.
ecommerce transactions by 2025, and instant payments are
set to make up more than 20 per cent of global transactions • API integration: Supports seamless connec-
by 2028. tions between payment systems, FX providers,
and settlement platforms.
As this volume increases, pressure is mounting to improve
cross-border infrastructure. New systems, including real- Adoption of these tools—especially when combined—
time payment rails, open banking, digital wallets and helps merchants serve more customers, navigate
blockchain infrastructure are helping reduce the friction regulatory hurdles, and manage cash flow across
that merchants and their customers often face. borders with greater confidence and control.

32