The changing face of international payments

Finextra

3 days ago

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By 2030, the global payments landscape is set to undergo a profound transformation. At the heart of this shift will be real-time processing, enhanced cross-border interoperability, and a growth in blockchain-based innovations – all driving forward a smarter, faster and more connected global financial system.
This transformation is being driven by a number of factors: accelerated international business growth, digitalisation, advances in technology, and coordinated policy efforts, such as the G20's push for alignment in standards. These developments are setting the stage for a new era in cross-border payments—one that is more seamless, secure, and inclusive.
The potential for this is immense. A recent report by the Bank of International Settlements found that for every one-percentage-point increase in digital payments adoption, a country could see a corresponding 0.10 percentage point rise in per capita GDP over two years.
Despite progress in speed and transparency, cross-border payments remain costly and fragmented. Through the G20 roadmap, these challenges are being addressed to facilitate international commerce - making cross-border payments cheaper, faster and more transparent.
In parallel, we are also seeing how alternative solutions using distributed ledger technology (DLT), tokenised deposits, and CBDCs are being trialed to enhance the resilience and efficiency of cross-border flows. Over time, these innovations could provide a credible and scalable alternative to existing payment rails.
The growth of payments and the drivers to change
The volume and value of international payments will continue to expand, but the pace and nature of this growth will vary across regions. It will be shaped by multiple factors: trade dynamics, the rise of ecommerce platforms, local financial infrastructure and regulatory environments.
Globalisation of trade
We are at a pivotal moment in international trade and commerce. As the global landscape rapidly shifts – whether due to tariffs, evolving policies or economic uncertainties - businesses are adapting by seeking new growth corridors and partners. Recent findings from HSBC's global survey of over 1,100 customers underscore this transformation: 96% view international expansion as critical to growth, scale and diversification, while nearly 70% expect the bulk of their revenue to originate from overseas markets within the next five years. In this context, efficient cross-border payments are not a luxury; they are a strategic necessity. Today's businesses rely on fast, reliable payment systems to manage global supply chains and meet customer needs across borders.
E-Commerce Platforms are transforming payments
E-Commerce is evolving into a dynamic ecosystem that integrates production, distribution, consumption and financing into a single, seamless experience. The global e-commerce market - valued at $25.93trn in 2023 - is expected to grow at a compound annual rate of 18.9%, reaching $47.7trn by 2030. This growth demands payment infrastructures that are not only fast and efficient, but also capable of supporting a fluid, user-friendly customer experience.
Technology is also playing a leading role; from real-time technology changing consumer preferences and buying behaviours, to the rise of the gig economy and social media, the volume of smaller value cross-border and domestic transactions using real time payment rails has grown significantly.
Accelerating market infrastructure and regulatory transformation
In parallel to the various shifts in trade and investment patterns, the payments industry is undergoing significant market infrastructure and regulatory transformation, which is in turn reshaping the payments landscape.
Key market infrastructure changes include real-time payments, new currency infrastructures like Cross-Border Interbank Payment systems (CIPS) for RMB settlement, ISO 20022 standardisation, alternative currencies (CBDCs, Stablecoin), digital assets and tokenisation, to name a few.
Implications of change
With the momentum in payments, domestic payment experiences are permeating into the cross-border sphere, pushing for increased interoperability of real time and cross border schemes, within the increased boundaries of greater security on the payment flows ensuring that confidence is built into the trade relationships.
Domestic payment experiences for cross-border
Consumer expectations around payments are increasingly influencing the cross-border space, having been shaped by seamless domestic transactions. With the rapid growth of international ecommerce, users now demand fast, low-cost and frictionless payment experiences, regardless of geography. In parallel, the rise of remote work is accelerating the need for efficient global payroll solutions, as more individuals are paid across borders. Businesses must adapt by streamlining their cross-border payment processes to meet these evolving demands
According to SWIFT's recent survey on small value payments, customer expectations are clear: 75% want payments settled within an hour. Simplicity and a smooth user experience are critical - but must not come at the cost of security and trust.
Transparency and traceability are also essential. Hidden fees and FX charges evoke a stronger negative reaction than failed payments, and 65% of respondents reported that they would switch providers if they could not track their funds).
As cross-border payments increasingly mirror domestic expectations, providers must evolve to deliver fast, transparent, and user-friendly experiences at a global scale.
Interoperability of real-time payment schemes are fueling the payment ecosystems
Real-time payments (RTP) are transforming the global payments landscape. According to the ACI Worldwide report, RTP transactions are forecast to exceed $575 billion globally by 2028. While most RTP schemes are still domestic in scope, the demand for seamless cross-border capabilities is rising—driven by expectations for speed, transparency, and convenience, particularly in peer-to-peer and SME payments.
Governments and financial institutions are increasingly collaborating to build the next generation of interoperable RTP ecosystems. These include bilateral and multilateral initiatives such as 'One-Leg Out' (OLO) models, integrations across RTP schemes (like SEPA OCT Inst), and the development of cross-border clearing hubs for instant settlement.
Asia is leading the way in testing these innovations. Central banks across the region are piloting bilateral RTP linkages for retail and SME use cases, for example:
FPS x PromptPay enables instant payments between Hong Kong and Thailand;
PayNow in Singapore is linked to networks in India and Thailand;
Project Nexus, backed by BIS Innovation Hub, aims to connect RTP systems across MY, SG, PH, TH, and IN; and
China's Internet Banking Payment System (IBPS) is now connected to Hong Kong's Faster Payment System (FPS).
As these experiments scale, they lay the foundation for a future where real-time, cross-border payments are as seamless and ubiquitous as domestic ones—fuelling economic growth, trade, and financial inclusion.
Addressing security challenges are key to cross-border and real-time payments
As the global payments ecosystem becomes more digital and interconnected, there is a heightened risk of financial cybercrime, particularly with the adoption of AI technology.
According to the recent 2025 AFP® Payments Fraud and Control Survey, 79% of organisations experienced payment fraud attacks in 2024, underscoring the need to strengthen security frameworks.
Corporates are increasingly prioritising tools that ensure payments reach the intended beneficiary, with real-time confirmation and notification playing a key role. Regulators and industry bodies are taking note and working on solutions to support pre-validation.
Initiatives such as the UK's Confirmation of Payee (CoP), and similar schemes in Hong Kong, India, and Thailand are already in place, with upcoming schemes in Australia and Europe.
Similarly, SWIFT's payment pre-validation solutions allow institutions to pre-validate payment data, even outside their own country or jurisdiction. These include the Banking Account Validation (BAV) solution to verify data with subscribed member banks, alongside the Central Banking Validation solutions (cBAV) system that leverages historical transaction data to verify the validity of the beneficiary account.
However, technology alone is not sufficient to combat payment fraud. Organisations need to employ a multi-layered approach, which combines strong foundational security controls, increasing employee awareness and a culture of shared cyber risk responsibility.
Opportunities for enhanced trade lies on the foundation of standardisation
ISO is rapidly emerging as the new language for payments, with the capability to tackle long standing challenges in cross-border transactions through structured and enriched data. By enabling greater transparency, efficiency, and interoperability, this standard helps businesses automate workflows, remove friction and strengthen financial crime compliance based on a much clearer view of payment flows.
With ISO20022 adoption accelerating, corporate treasuries have the opportunity to optimise their operations – with enhanced visibility across transactions, treasurers can manage liquidity more effectively, something that is paramount in today's economic landscape.
Similarly, as participants in the global-commerce ecosystem take on standardisation, customers and suppliers can experience smoother and frictionless transactions, improving the overall user experience.
The digital money continuum: From experiments to mainstream
DLT, including blockchain, is transforming payments through decentralised, secure, and immutable transaction networks. This shift has important implications, especially in reducing reliance on correspondent banking, enabling 24/7 real-time settlement, enhanced transparency and compliance with KYC, AML, and sanctions requirements.
Regulatory approaches to digital currencies vary globally. In the US, the recent Genius Act has encouraged stablecoin adoption, while other banks have explored Central Bank Digital Currencies and tokenised deposits for cross border payments. Corporate treasurers are also exploring tokenisation to drive greater treasury management efficiencies.
By 2030, instant payments are expected to account for more than 20% of global transactions, supported by DLT interoperability, AI-driven security, and coordinated regulatory alignment. Cross-border flows will increasingly benefit from initiatives such as Project Nexus, while tokenised deposits and CBDCs will help to redefine how liquidity is managed. The convergence of digital innovation, shifting business models and an evolving regulatory environment is unlocking powerful opportunities for corporate treasuries. Digital treasury solutions are now central to long-term growth strategies that support business growth and are critical in building for the future and leveraging future business opportunities.