Future opportunities and trends in cross border payments to boost financial inclusion

Nowadays, cross-border payments are getting a lot of attention, with multiple fintech companies entering this competitive market.


Moreover, the rapidly changing technology and financial landscape has made it challenging for businesses to move or transfer money across borders efficiently, quickly, and securely. Thus, your business has to evolve to the latest opportunities and trends in cross-border payments to boost financial inclusion.


Wth the arrival of new and innovative digital payment solutions, the future of cross-border payments looks promising. Plus it boosts financial inclusion at its core. 


According to a study, B2B cross-border payments are estimated to grow by USD 42.7 trillion by 2026. There are several reasons for this development, which we'll explore in this guide.


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Trends in cross-border payments to boost financial inclusion

Emerging cross-border FinTech solutions

Partnerships between mobile operators and fintech innovators allow your business to have interoperable mobile wallets.


Cross-border fintechs will emerge as an opportunity for your business as you can offer quicker transactions with lower fees. 


Additionally, several fintechs offer API integration that allows your business to seamlessly connect cross-border payment services with your existing system.


By leveraging specialized fintech-based solutions, your business gains a competitive edge. Their features, such as multi-currency accounts and mass-payment systems can automate processes and enable global expansion without the need for physical presence in different countries. 

The rise of cross-border transactions in coming years

By 2027, cross-border payments are estimated to significantly grow by $250 billion. This global growth is driven by various factors, including, 

  • Increasing popularity of mobile payments

  • Rise in digitization, and 

  • Increase in the globalization of trade


With the rise in digital payments and cross-border activities, there's an evolving need for cost-effective and efficient cross-border payment solutions.


Real-time cross-border payments with blockchain technology

The hurdle that hampers cross-border payments is the time it takes to send or transfer money to the recipient living in a different country. The reason behind this lack is the functioning of banks in different schedules and time zones, which directly leads to delays in payments. 


Moreover, banks often depend on intermediaries, like MTO who take more time to process these payments. 


The key advantage of blockchain technology is instant processing and settlement, which ensures that the money reaches the recipients within seconds. This eliminates delays and enhances financial efficiency.


Today, businesses are looking for effective service providers equipped with real-time capabilities. 

Innovation always on top for cross-border payments

Several businesses like yours are interested in making cross-border transactions, and nearly 80% of them expect to see an escalation in transaction volume in the future.


For payment providers and retailers, more cross-border payments will take place to bring better business development and opportunities, considering their long-term presence in the market.


If businesses collaborate with third-party providers to increase the effectiveness of their operations or payment security, it can contribute to efficiently transforming the payment industry and hence, will increase their sales. 


It will also result in making the payment world more efficient, user-friendly, and faster for users worldwide with unique innovations and modernization.

Upsurge in SWIFT Go

SWIFT Go is one of the leading trends in cross-border payments to boost financial inclusion. It's a convenient, faster, and user-friendly payment system that will offer your business cost-effective service for low-value cross-border payments.

Rising usage of AI in cross-border payments

The increasing usage of AI has brought a wave of revolution in every sector. Thus, in 2024 and beyond, you’ll see how AI for cross-border payments will help your business recognize the faces and payment requirements. 


They will provide perks in like cashback, discounts, deals, rewards, and loyalty programs that best fit the customers' requirements.

Development in financial inclusion and international remittance

Remittances and financial inclusion go hand-in-hand. When a higher number of remittances takes place, it results in boosted financial inclusion. In several developing countries, remittance is the major source of foreign income. 


With the evolution of time and technological advancements, consumers are more connected to the internet worldwide. 


Moreover, demands for cost-effective, faster, and safer digital payment solutions are increasing. Over the last few years, digital remittances have been at a peak and will continue to boom in the financial market with the entry of MTOs. 


The evolving landscape of cross-border payments is making waves due to the rapid change in consumer expectations and needs.  


With rapid digitization, remittance payments will continue to lead in emerging markets. This trend will grow with the increase in the volume of remittances sent by migrants (sender) to their families in their countries. 


Not only this but the digitization of remittances will offer millions of consumers the accessibility and much-needed financial inclusion that were previously absent from the financial markets.

Worldwide expansion of SMEs

Cross-border payments are important considering the global evolution of businesses. According to a study, B2B cross-border payments will continue to increase, and most global businesses of different sizes will find it easier to send or receive cross-border payments. 


Several payment solutions, such as SWIFT GPI and B2B payment solutions, offer businesses flexibility and more suitable payment options for SMEs.

Conclusion

The rising growth of the cross-border payment world is fuelled by the latest payment technologies to boost financial inclusion. The above-mentioned trends and opportunities have opened the door for cashless transactions in developing countries. 


These future technologies have also increased access for rural, underserved, or underbanked populations, and are beneficial for small plus medium-sized businesses considering digital payment resources.

 

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