SCALING NEW HEIGHTS The demand for cross-border payments is soaring, but better infrastructure will take them to a whole new level
BRINGING ABOUT CHANGE To effectively support money movement at scale, businesses need a globally- minded financial infrastructure. We use the term infrastructure as a combination of tech, banking partnerships and regulatory frameworks is required to bridge the experience gap between domestic and international payments. A network of real-time payment rails can take cross-border settlement speeds from days to seconds, bringing considerable advantages to cash flow and financial management, while supporting more specific use cases which rely on an instant access to funds.
Cross-border payments are increasing every year. Not just 0.5 per cent here or there, but growing from a valuation of $150trillion in 2017 to a predicted $250trillion in 2027, as stated by the Bank of England. We live in an increasingly connected world in which trade dynamics have changed. Supply chains are expanding, investment flows internationally, global e-commerce is always growing and migrant workers need to send funds via remittances. However, the experience of sending payments internationally still lags significantly behind domestic payments.
They’re slow, costly, difficult to navigate from a regulatory perspective and complicated to reconcile. This restricts growth, not just for enterprise businesses, but for entire nations. It is such a pressing issue that in 2021, G20 leaders committed to certain goals for improving cross-border payments. These goals included giving all individuals and businesses the ability to send and receive electronic cross-border payments by the end of 2027, and 75 per cent of retail cross-border payments completing within one hour
by the end of 2027. In order to get there, we need a holistic approach.
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