Latest news with #crossBorderPayments
Finextra
6 days ago
- Business
- Finextra
EBAday 2025: Solving for low-value cross-border payments
The panel session 'Evolving Business Models in Cross-Border Payments', explored the complexity and evolution of modern cross-border payments. 0 Moderating the last panel session of EBAday, Leo Lipis, chief executive of Lipis Advisors, talked all things cross-border payments with a panel including Akshat Saharia, head of European financial institutions product and propositions global payments solutions at HSBC; Anastasia Serikova, head of Visa Direct for Europe, Visa Direct; Emanuela Saccarola, head of cross-border payments, Citi Services; Sanjeev Bhatti, director - product management global payments at BNY; and Steve Naudé, global managing director, Wise Platform. As there have been multiple sessions discussing the complexity of cross-border payments, Lipis kicked off the session by pointing out that this session will focus on low-value payments of under $100,000. The panel highlighted that one of the main differences between high- and low-value payments is the varying consumer expectations. Naudé began by outlining that speed and price are not the crucial factors for high-value payments, whereas security is essential. For low-value payments however, consumer have expectations for payments to be seamless, cheap, and instant. How these payments are processed also looks very differently in the backend. Saccarola picked up on the complexity aspect: "In the past, we had one way to make cross-border payments, and that was wire. Now you have instant payments, cards, wallets, digital assets. So this space gets very complex very quickly. And complexity is added up by the fact there are 200 countries in the world. Each corridor, it's one cross-border payment corridor you have to solve for. So if you do the math, that's about 20,000 combinations." A poll to the audience revealed that 66% of participants' banks use RTGS for the Euro leg of cross-border, cross-currency payments, 12% use real-time payments, and 8% use Batch. Another aspect is perceived segmentation of high- and low-value payments. "We always think about retail as low-value," Serikova explained. "In reality, Visa services a couple of ultra-high net worth individuals, and those payments can be really high-value. And equally, we think of large corporates as high value, but in reality, how many of them have supplier payments under 10k? [Financial institutions have] a whole matrix of customer needs that they need to be able to service accordingly." However, it's not just consumer expectations that have changes, B2B cross-border payment are affected as well. As low-value payments expectations have evolved, we have quickly taken those expectations from our private to our business lives, and organisations are increasingly demanding more seamless and instant payments. On top of that, the gig economy is another aspect that has shifted the expectations of cross-border payments. Considering all of these factors, how many priorities are too many priorities? How can financial organisations address this complexity? "The world of cross-border payments is getting very complicated," Bhatti stated. On top of traditional methods, you have "instant payments schemes opening up, which have different limits, different rules, different requirements. You have projects that are tied to these schemes like IHP and Nexus. And then you've got blockchain solutions like Agorá. And you can get involved in all of these, if you've got the bandwidth to do it, but it's probably easier to select a partner who can insulate each chain, or multiple partners, and it's relatively straightforward to connect to it." Saccarola agreed that organisations need to decide whether they want to do it on their own or work with a provider, or even work with providers for certain currencies and implementing solutions for other currencies. It's all about complementing their strengths. A second poll to the audience enquired about the biggest barrier to changing operating models in low-value cross-border payments. 37% of respondents stated inertia and complexity of change, 22% mentioned regulation, 18% answered scheme limitations, 16% stated lack of a business case, and 4% answered lack of awareness. Saharia commented: "There is a lot happening, but I sometimes feel that with all the right intent, all the greatest technology out there, we sometimes forget what we are trying to solve." For example, "the talks about interconnecting RTP schemes. I think it's a great vision, but [..] we forget how complex it is to bring central banks and regulators to work together to come up with a common framework how to prevent fraud if any participants fail? It's already very hard when it's within a single country. It gets absolutely complex when it's multiple countries. [..] While we have all these different models, we keep forgetting that there was an old world for correspondent banking—sorry, I'm a banker, I have to say this—that still works. There are lots of things that have to be done to improve it, and a lot of work has happened already." Naudé agreed that banks need to find the right partnerships for the problems they are trying to solve for. He emphasised that there are a lot of options in the market, so institutions should look at the quality of infrastructure they would be purchasing. "How many payments are going to be reachable with the beneficiary in what period of time? How are providers connected into those rails?" Serikova added the importance of compliance when searching for the right partnership, and striking the balance between "global coverage, but it needs to be combined with really deep local expertise." Looking towards the future of cross-border payments, Bhatti mentioned that the "EBA have a big role in this. I think its core strength is harmonisation and an early spot of risks. As we move towards this new horizon, that harmonisation is going to be key. But also as payments get quicker, being able to spot the risk and communicate it across the community quickly could be essential."
Forbes
26-05-2025
- Business
- Forbes
Airwallex Bucks The Fintech Winter: Inside The $6.2 Billion Bet On Cross-Border Payments
Jack Zhang, co-founder and chief executive officer of Airwallex Pty., at the Founders Forum Global ... More conference in Great Tew, UK, on Thursday, June 13, 2024. The conference connects founders with influential investors, CEOs, and government officials. Photographer: Jose Sarmento Matos/Bloomberg When Australian-born, now Singapore-headquartered, Airwallex disclosed on 21 May that it had pulled in another US $300 million at a US $6.2 billion valuation, many observers, including myself, reacted with surprise - if not disbelief. Venture investment into fintech is trudging through its deepest freeze in seven years, down 72% year-on-year for 'banking tech' deals in the March quarter alone, according to fresh industry tallies. Yet here was a cross-border payments specialist posting an 11% valuation jump on the back of a round that was half secondary and half primary, led not by desperate existing investors but by a syndicate that still includes DST Global, Lone Pine and Square Peg. Airwallex is not the only money-movement start-up sidestepping the funding winter. In the past fortnight alone: Both sums are rounding errors next to Airwallex's war chest, but the optics are identical: cross-border payments, particularly B2B FX, remain fundable even as consumer-lending, wealthtech, and Buy Now Pay Later (BNPL) valuations continue to compress. Investors have decided that helping companies shift money across borders is a fundamental plumbing business, not a cyclical sugar high. 1. Locked-in revenue pools McKinsey's most recent Global Payments Report put 2025 cross-border flows at US $200 trillion - a 15% jump in a single year. B2B trade still makes up roughly two-thirds of that. Even if the growth rate cools to a projected five percent CAGR through 2028, that still adds up to a tremendous amount of potential fee income across the system. Unlike retail BNPL, those flows are not optional; they are the grease that keeps global supply chains moving. 2. Diversified corridor exposure Airwallex's latest numbers show the firm's gross profit in the Americas and Europe growing at a 250 percent CAGR over the past four years, while Asia remains its anchor. A corridor-agnostic model hedges geopolitical risk far better than single-market neobanks. 3. Enterprise stickiness Companies that integrate a provider's APIs into their treasury or marketplace stack rarely rip them out. Once Airwallex sits under Shein, Qantas or Xero—as the company now boasts—the switching costs soar. Net revenue retention north of 120 percent is commonplace, cushioning any macro wobble. 4. Structural tailwinds Cross-border e-commerce, digital nomad payrolls and the still-unfinished job of real-time interlinkage (PayNow-DuitNow, PROMPT Pay, InstaPay et al.) are permanent growth levers. Even banks concede that 'up to 65 percent' of low-value international transfers have already migrated to non-traditional providers. Compare Airwallex's trajectory with that of two other fintech archetypes: Why the difference? Because cross-border players monetise both volume growth and FX spread, giving them an inbuilt hedge against interest-rate gyrations. When the Fed raises rates, Klarna's funding costs balloon; when the dollar spikes, Airwallex makes more money per transaction. Airwallex's US $6.2 billion price tag now represents roughly 5.5 times its forecast US $1 billion run-rate revenue for 2025. That multiple looks steep beside public-market comps. London-listed Wise trades at about 3 times forward revenue and a US $11 billion market cap as of 23 May. Yet private investors seem willing to pay an 'execution premium' for the faster-growing challenger, betting that it will eventually land above the peers once it monetises adjacent services such as multi-currency credit and corporate cards. The brutal reality for most late-stage fintechs is a flat or down round. According to venture advisory Pathlight, fewer than 10 percent of Series D+ fintech deals in Q1 2025 priced above their previous round. Airwallex sits in that privileged minority—one reason its raise captured headlines far beyond the payments clique. CEO Jack Zhang says the fresh cash will bankroll pushes into Japan, Korea, the UAE and Latin America, plus heavier investment in an embedded-finance suite that already offers treasury, expense management and credit. The more interesting subplot is the US $150 million in secondary share sales baked into the deal: early employees and angels are finally getting partial liquidity, a gentle nod to the fact the IPO window may still be 18-24 months away. For customers, that war chest translates into ever-thinner spreads. The dirty secret of cross-border FX is commoditisation: if you cannot beat Wise or Revolut on price, you had better differentiate on API depth or local payout options. With annual transaction value already above US $130 billion, Airwallex can amortise margin pressure across scale. Yes, says the recent flow of smaller cheques into seed-stage payment infrastructure outfits. OpenFX's seed-plus round and Navro's Series B tell us that VCs are still pushing money toward anyone claiming to shave basis points off global settlement. They are not underwriting the next consumer wallet; they are underwriting the next generation of 'picks and shovels' that power borderless trade. That aligns neatly with corporate procurement habits. When an apparel marketplace in São Paulo wants to pay a fabric mill in Guangzhou on Sunday night, it does not care about flashy branding; it cares that the money lands in hours, not days, and reconciles back to its ERP automatically. Cross-border infrastructure has become a utility - and utilities attract 'flight-to-quality' capital when the rest of the market turns risk-off. 1. Regulatory minefields. Every jurisdiction now flirts with hard data-localisation rules, tougher licensing for Payment Aggregators (India's PA regime is the poster child) and looming equivalence questions under Basel's prudential treatment of digital-asset exposures. A single compliance mis-step can turn a growth engine into a money pit. 2. The ascent of instant domestic rails. ASEAN's mesh of bilateral QR links promises dollar-free retail settlement. As those networks mature, spread-taking intermediaries could be squeezed out of low-ticket corridors entirely. B2B flows are safer, but the margin ceiling will keep ratcheting down. 3. IPO timing risk. Airwallex clearly wants a public listing - rumour has long swirled around a dual US-Hong Kong float - but the 2025 window is crowded. VC-owned peers such as Nium, Stripe and Rapyd eye the same runway; saturation could trigger valuation discipline that private investors have postponed. The broader lessons for founders and investors are stark: For regulators, the raise is another data point that competition in international payments is intensifying without formal regulatory bulldozing. The BIS's Project Nexus and ASEAN's multilateral Fast Payment System have yet to launch - and already the private sector is slashing fees and speed. Fintech may be in a funding freeze, but cross-border payment specialists like Airwallex are skating on a thicker sheet of ice. They own the pipes through which global commerce flows, and—at least for now—those pipes are indispensable. As capital reallocates toward ventures that promise boring reliability rather than headline-grabbing growth, the humble FX spread is turning into one of the safest bets in next-generation finance. If history is any guide, a 5–6× revenue multiple for a hyper-growth infrastructure play will not look extravagant once public investors regain their appetite. Until then, every Series C founder building treasury APIs or multicurrency wallets will pin Airwallex's funding deck to the virtual wall and tell investors: 'See? Payments plumbing pays.'
Malay Mail
20-05-2025
- Business
- Malay Mail
XTransfer Named Among The Top 100 Cross-Border Payments Companies for 2025 by FXC Intelligence
XTransfer Named Among The Top 100 Cross-Border Payments Companies for 2025 by FXC Intelligence HONG KONG SAR - Media OutReach Newswire - 20 May 2025 -has been named for the first time to'slist for 2025. XTransfer's debut on this prestigious list places it among a select group of companies at the forefront of innovation, inclusion, and global financial Intelligence, a leading data and intelligence provider for the cross-border payments industry, annually recognises the most influential companies in money transfers, payment processing, e-commerce, and B2B payments. This acknowledgement highlights XTransfer's increasing significance in the global payments ecosystem and emphasises its commitment to empowering companies involved in cross-border trade through innovative financial in 2017, XTransfer has rapidly emerged as a key player addressing the unique challenges SMEs face in cross-border transactions. With a strong focus on the Asia-to-global and global-to-Asia trade corridors, the company now serves over 600,000 enterprises in more than 200 markets, processing more than $10 billion in monthly transactions."Being recognised by FXC Intelligence in this prestigious list is a tremendous honour and a testament to the trust our customers place in us," said. "We remain committed to removing barriers for SMEs in cross-border trade by offering efficient, secure, and affordable international payment solutions."XTransfer's inclusion reflects its exciting global expansion over the past year. It has secured payment licenses in key U.S. states and Singapore, and has experienced significant traction in emerging markets. In Q1 2025, nearly 70% of XTransfer's platform customers were exporting to Asia, Africa, or Latin America, highlighting the platform's growing relevance in underserved innovations include the launch of the global mobile app and the rollout of its Local Currency Account, designed to simplify payments in emerging markets. Additionally, XTransfer has deepened its global reach through strategic partnerships with financial institutions such as Ecobank, Deutsche Bank, Terrapay and Banking #XTransfer #SMEs #FXC #Top100 #Crossborder #Payment The issuer is solely responsible for the content of this announcement.
Zawya
20-05-2025
- Business
- Zawya
XTransfer Named Among The Top 100 Cross-Border Payments Companies for 2025 by FXC Intelligence
HONG KONG SAR - Media OutReach Newswire - 20 May 2025 - XTransfer, the world's leading and China's No.1 B2B Cross-Border Trade Payment Platform, has been named for the first time to FXC Intelligence 's Top 100 Cross-Border Payments Companies list for 2025. XTransfer's debut on this prestigious list places it among a select group of companies at the forefront of innovation, inclusion, and global financial connectivity. FXC Intelligence, a leading data and intelligence provider for the cross-border payments industry, annually recognises the most influential companies in money transfers, payment processing, e-commerce, and B2B payments. This acknowledgement highlights XTransfer's increasing significance in the global payments ecosystem and emphasises its commitment to empowering companies involved in cross-border trade through innovative financial solutions. Founded in 2017, XTransfer has rapidly emerged as a key player addressing the unique challenges SMEs face in cross-border transactions. With a strong focus on the Asia-to-global and global-to-Asia trade corridors, the company now serves over 600,000 enterprises in more than 200 markets, processing more than $10 billion in monthly transactions. "Being recognised by FXC Intelligence in this prestigious list is a tremendous honour and a testament to the trust our customers place in us," said Bill Deng, CEO and Founder of XTransfer. "We remain committed to removing barriers for SMEs in cross-border trade by offering efficient, secure, and affordable international payment solutions." XTransfer's inclusion reflects its exciting global expansion over the past year. It has secured payment licenses in key U.S. states and Singapore, and has experienced significant traction in emerging markets. In Q1 2025, nearly 70% of XTransfer's platform customers were exporting to Asia, Africa, or Latin America, highlighting the platform's growing relevance in underserved regions. Recent innovations include the launch of the global mobile app and the rollout of its Local Currency Account, designed to simplify payments in emerging markets. Additionally, XTransfer has deepened its global reach through strategic partnerships with financial institutions such as Ecobank, Deutsche Bank, Terrapay and Banking Circle. Hashtag: #XTransfer #SMEs #FXC #Top100 #Crossborder #Payment The issuer is solely responsible for the content of this announcement. XTransfer
Malay Mail
19-05-2025
- Business
- Malay Mail
SUNRATE Named Among Top 100 Cross-Border Payment Companies for 2025 by FXC Intelligence
SINGAPORE - Media OutReach Newswire - 19 May 2025 - SUNRATE, the global payment and treasury management platform, has once again been recognised by FXC Intelligence as one of the Top 100 Cross-Border Payment Companies worldwide. This marks the second consecutive year SUNRATE has received the accolade, underscoring its growing influence and leadership in the cross-border payments Intelligence's annual list celebrates the most innovative and impactful companies transforming the cross-border payments landscape — spanning fintechs, banks, infrastructure providers, and payment processors. SUNRATE's continued inclusion highlights its rapid growth, strong performance, and commitment to driving forward-thinking solutions for global Webber, CEO and founder of FXC Intelligence said, "SUNRATE's rapid growth in the cross-border B2B Asia payments landscape is the direct result of its strategic vision and commitment to innovation. With a robust platform, recent geographic expansions and strategic partnerships, SUNRATE is not only broadening its global footprint but also showing operational excellence, underscoring its pivotal role in facilitating seamless international payments. Its inclusion in this year's Cross-Border Payments 100 is well deserved and indicative of its growing influence in the sector."Paul Meng, co-founder and CEO at SUNRATE said, "Being recognised by FXC Intelligence for the second year in a row is a testament to our team's unwavering vision to become the leading global cross-border B2B payment platform in emerging markets. As global commerce becomes increasingly interconnected, we remain focused on delivering cutting-edge, scalable solutions that power our clients' international ambitions."Over the past year, SUNRATE has significantly expanded its global footprint across APAC, EMEA, and other key regions, while also broadening its offerings into new business verticals. Today, SUNRATE enables businesses to send payments to over 190 countries and regions, transact in more than 130 currencies, and settle commercial card spending in over 15 currencies. Its global collection services support 30+ currencies, allowing businesses to collect funds in over 10 major global currencies—as if they were local transactions. Earlier this year, SUNRATE introduced its "Trading and Hedging" solutions, designed to equip businesses with advanced FX trading tools, tailored hedging strategies, and a suite of financial instruments, such as OTC SUNRATE marks this important milestone, it remains focused on the road ahead. The global payments landscape is evolving rapidly, fuelled by technological innovation and the growing need for streamlined, secure cross-border transactions. The company is proud to be at the forefront of this transformation—harnessing its global network, cutting-edge technology and customer-centric approach to redefine the future of international #SUNRATE #FXCIntelligence The issuer is solely responsible for the content of this announcement. About SUNRATE SUNRATE is a global payment and treasury management platform for businesses worldwide. Since its inception in 2016, SUNRATE has been recognised as a leading solution provider and has enabled companies to operate and scale both locally and globally in 190+ countries and regions with its cutting-edge proprietary platform, extensive global network, and robust APIs. With its global business headquarters in Singapore and offices in Hong Kong, Jakarta, London, and Shanghai, SUNRATE partners with the top global financial institutions, such as Citibank, Standard Chartered, Barclays, J.P. Morgan and is the principal member of both Mastercard and Visa. To learn more about SUNRATE, visit About FXC Intelligence
