How Cross Border Payments Are Transforming Global Banks

The global payments environment is changing fast. Today’s customers expect faster, more convenient payment options, and this demand now strongly applies to cross border payments as well. As more individuals, small businesses, and corporations engage in cross border transactions, they’re actively seeking financial institutions that can handle these transfers smoothly and efficiently.

A growing number of people now use non-bank services for payments like sending money to loved ones abroad. Many choose these options because traditional banks often charge high fees and offer less competitive foreign exchange rates. To get around this, customers usually transfer funds from their bank accounts to digital wallets and hold money there instead. This shift puts pressure on banks to manage currency accounts and correspondent networks more effectively.

Historically, cross border payments have been slow, expensive, and burdened by outdated systems. But this is starting to change. There are now three major trends reshaping how international payments are handled. First is the push to link real-time payment systems across countries. Second is the development of new alternatives to traditional messaging networks. And third is the global initiative to meet the ambitious goals set by the G20 to improve cross border payment speed, transparency, and affordability.

These changes present a major opportunity for banks and payment providers like Order Express. By embracing innovation and improving infrastructure, they can better meet customer needs and remain competitive in this evolving space. In the next sections, we’ll explore how these trends are reshaping the future of cross border payments and what they mean for businesses and individuals alike.

Global Real-Time Infrastructure and Payment Scheme Integration

As real-time payment systems continue to expand, countries and institutions are working to connect these infrastructures across borders. The goal is to simplify, accelerate, and streamline cross border payments by linking domestic schemes and creating unified frameworks. This section explores how various initiatives and collaborations are making international transactions faster and more accessible.

Building a Faster Global Network: Linking Real-Time Payment Systems for Cross Border Payments

Real-time payments , also known as instant or immediate payments , are transforming how money moves. These systems allow funds to be sent and received within seconds, delivering major benefits to businesses, consumers, and banks alike. While this technology has become widespread within individual countries, efforts are now accelerating to connect these systems across borders.

The goal is to make international transfers as quick and seamless as domestic ones. By linking national real-time payment networks, cross border payments can become faster, more transparent, and cost-effective. This is especially valuable for people sending money to family abroad, small businesses paying international suppliers, or companies managing cross-border operations.

Such progress also reduces reliance on outdated and expensive legacy systems. For providers like Order Express, it could create new opportunities to deliver better service, improve customer trust, and stay competitive. As real-time systems grow globally, cross border payments are entering a new era of speed, security, and accessibility.

Real-Time Payments Across Borders: How Singapore and Thailand Are Leading the Way

In 2021, Singapore and Thailand took a major step forward in cross border payments by linking their real-time retail payment systems, PayNow and PromptPay. Order Express does not currently provide PayNow-to-PromptPay transfers; any future rollout will be announced after regulatory approval. This connection allows customers from participating banks in both countries to send money using just a mobile number. Transfers can often be completed in minutes, subject to the participating banks, scheme rules, and applicable regulations.

This groundbreaking move supports quicker and more accessible cross-border remittances, especially for individuals sending money to family or small businesses managing regional operations. Since then, other countries have followed this model, exploring similar links between their own real-time payment systems.

Beyond person-to-person transfers, real-time payments are also being used in retail. By combining QR code technology with instant payment rails, people can now make cross-border purchases at physical stores more easily. This innovation is helping to break down financial barriers and set a new standard for how Cross Border Payments can be done, faster, safer, and more efficiently than ever before.

Expanding UPI’s Global Footprint to Power Cross Border Payments

India’s Unified Payments Interface (UPI) is gaining momentum beyond its borders as the country takes active steps to expand the system internationally. UPI, known for enabling real-time payments within India, is now being connected to other markets to support seamless cross border payments. For example, Indian travelers visiting the Middle East can already make purchases by scanning QR codes linked to their UPI accounts, offering a fast and familiar payment experience abroad.

In addition, India is working closely with central banks in countries such as Singapore, Thailand, Malaysia, and Indonesia to build direct UPI integrations. These collaborations aim to simplify and accelerate cross-border retail payments, especially for individuals and small businesses operating in multiple countries.

Looking ahead, there are also early discussions about extending UPI’s reach to the US and Europe. As these efforts continue, UPI is emerging as a key player in the future of global finance, helping make cross border payments more accessible, efficient, and user-friendly for everyone.

Project Nexus: Building a Unified Pathway for Cross Border Payments

One of the most promising developments in global finance is Project Nexus, an initiative led by the BIS Innovation Hub. Its goal is to interconnect domestic real-time payment systems in countries like Malaysia, Singapore, the Philippines, India, and Thailand. Instead of setting up separate bilateral connections between each country, Nexus would allow users to connect through a single, standardized system. This could drastically reduce complexity while making cross border payments faster and more streamlined.

By linking these networks under one framework, Project Nexus has the potential to significantly improve the speed, cost, and transparency of international transactions. For businesses and individuals alike, this means more reliable access to global payments with fewer delays and lower fees.

However, successful implementation will require navigating a range of regulatory challenges. Each country has its own compliance rules, technical standards, and procedures for handling exceptions. Despite these hurdles, many in the industry are watching Project Nexus closely as a major step toward transforming global cross border payments.

Innovations, Challenges, and Strategic Opportunities in Cross Border Payments

To meet the demands of today’s global economy, banks and payment providers are adopting new technologies, exploring alternative rails, and aligning with global standards. This section covers the tools, trends, and strategic shifts enabling better service, efficiency, and scalability in the cross border payments space.

Unlocking New Potential: Exploring Alternative Rails for Cross Border Payments

As the demand for faster and more affordable cross border payments continues to grow, many banks are exploring alternatives to traditional systems like Swift. One emerging approach involves working with money transfer organizations (MTOs) that specialize in sending funds to specific countries or customer segments. These organizations offer more flexible and efficient payment rails, especially in high-volume remittance corridors.

MTOs can often deliver funds directly through local clearing schemes, eliminating the need to rely on partner banks for processing. This not only improves transaction speed but also enhances service quality by reducing intermediaries. Some MTOs even have the capability to clear payments directly, enabling better control over delivery and lower costs for the end user.

While connecting to an MTO may present technical challenges, such as API integration, many are now offering options that support easier onboarding. For providers like Order Express, alternative rails offer a valuable opportunity to expand reach, improve efficiency, and better serve customers in the evolving cross border payments landscape.

Alternative Payment Models: How MTOs Help Banks Expand Cross Border Payments

To improve their reach and efficiency in cross border payments, many banks are turning to money transfer organizations (MTOs) that offer flexible connection models. These models help banks send funds to regions where they may lack a direct correspondent banking relationship.

One approach is the direct connection model, where a user in one country, such as the UK, can log into an MTO platform and send funds directly to a beneficiary bank in another country like Singapore. The MTO leverages its integration with local real-time payment schemes to make the transfer nearly instant. Actual implementation timelines and participating corridors will depend on licensing and partner readiness.

The indirect connection model involves a local bank partnering with an MTO. Here, the bank routes customer payments through the MTO, which then delivers funds using a local partner bank or clearing scheme in the destination country.

In cases where MTOs are not used, some banks partner with specialist correspondent providers to access exotic currencies or serve hard-to-reach regions. These strategies enhance cross border payments while maintaining valuable customer relationships, even if it means sacrificing FX margins.

Driving Change Through the G20 Targets for Cross Border Payments

One of the most influential developments shaping the future of cross border payments is the G20 Roadmap, launched by the Financial Stability Board (FSB). This long-term initiative aims to improve four key areas of international payments: cost, speed, access, and transparency. The roadmap sets clear expectations for global financial institutions to significantly enhance the efficiency of their payment services over the coming years.

As a result, banks are now under pressure to improve how they manage both incoming and outgoing cross border-payments. This goes beyond the payment rails themselves, it also involves upgrading internal systems to respond faster and more accurately.

To meet these expectations, banks need real-time access to fraud prevention tools, compliance checks, and foreign exchange (FX) rates. Efficient coordination between these systems is critical. Banks must also be able to confirm that each step of the payment process has been successfully completed, ensuring greater reliability and trust in the cross border payments experience.

The Growing Need for 24/7 Availability in Cross Border Payments

As expectations around speed and convenience rise, 24/7 system availability is becoming a key requirement for banks operating in the cross border-payments space. In many countries, large domestic banks already have round-the-clock access to their core banking and accounting systems. However, foreign banks, particularly those focused on corporate clients, often still operate on traditional weekday schedules, making it harder to meet real-time demands.

This becomes a challenge when a payment message arrives overnight or on the weekend. Banks must be able to confirm receipt and credit the customer’s account without delay. In some cases, onward payments to a local bank via the real-time gross settlement (RTGS) system may be delayed if the local clearing scheme is closed.

To address this, several countries are extending the operating hours of their RTGS systems. However, a more flexible solution is emerging: rerouting lower-value transactions through domestic immediate payment schemes. These systems typically operate 24/7 and are better positioned to support the faster processing expectations of modern cross border payments.

Improving Transparency and Reducing Costs in Cross Border Payments

Beyond speed, the G20 roadmap places a strong emphasis on improving transparency and cost in cross border payments. Customers today expect clear, upfront information about fees, exchange rates, and the status of their transactions. For banks, this means investing in systems that can provide real-time updates and cost breakdowns at every stage of the payment process.

Traditionally, Swift payments have benefited from tracking tools like the GPI tracker, which help banks and customers monitor the status of a payment from initiation to settlement. However, with the growing use of alternative rails and immediate payment schemes, banks now face the challenge of offering the same level of visibility across multiple payment types.

To meet evolving expectations, banks must be able to provide end-to-end tracking regardless of the route a payment takes. This capability is essential for building trust and ensuring that cross-border payments are not only fast and secure, but also fully transparent and competitively priced for the customer.

Embracing Innovation to Unlock the Future of Cross Border Payments

The payments landscape continues to evolve quickly, and in the world of cross border payment, this shift brings both challenges and exciting new possibilities. Efforts to interconnect real-time payment systems, adopt alternative rails, and align with G20 goals are helping to create a future where cross-border payments are faster, more affordable, and fully transparent.

Imagine being able to respond to market demand instantly, whether by activating a new payment rail to reach a specific region or adjusting FX margins to stay competitive. These are real opportunities for banks and payment providers ready to innovate.

However, legacy infrastructure often stands in the way. To stay competitive, banks must move beyond outdated systems and embrace modern, flexible solutions. These tools should support automation, compliance, customer needs, and the ability to scale services quickly. For providers like Order Express, staying ahead means delivering smarter, faster cross border payment that meet the demands of today, and open the door to the opportunities of tomorrow.

Conclusion

As global commerce accelerates, the demand for seamless, real-time cross border payment is no longer optional, it’s essential. Interlinking payment systems, embracing alternative rails, and aligning with international standards are driving major improvements in speed, cost, and transparency. Forward-thinking providers like Order Express are seizing these changes to create smarter, more responsive global payment experiences.

But to fully unlock these opportunities, financial institutions must leave behind rigid legacy systems and adopt flexible, scalable solutions. Innovation isn’t just about technology, it’s about meeting rising expectations for accessibility, clarity, and control. By staying ahead of regulatory changes and consumer demands, providers can expand reach, strengthen trust, and compete more effectively in a fast-changing market.

Now is the time to act. The future of cross border payment belongs to those ready to evolve, automate, and deliver value at every step.

Compliance Notice: The technologies and enhancements described above are subject to jurisdiction-specific licensing, regulatory approval, and operational readiness. Availability dates, pricing, and features may vary and will be communicated by Order Express once finalized.

FAQs

What are cross border payments?

Cross border payments are transactions where the sender and recipient are in different countries.

Why are real-time payments important for cross border transactions?

They speed up delivery, reduce costs, and improve transparency compared to traditional international transfers.

What is an alternate payment rail?

It’s a non-traditional method for sending payments, often faster and cheaper than legacy systems.

How do banks track cross border payment?

Banks use tools and APIs to monitor status, fees, and foreign exchange applied to transactions.

Can cross border payment be made 24/7?

Yes, with real-time systems and modern rails, many cross border payments now process any time, any day.