Cross-border Payments Updates Highlighted at 2024 Singapore Fintech Festival
Streamlining Cross-Border Payments: A New Era in Global Business
In the ever-evolving landscape of international trade and commerce, cross-border payments play a pivotal role. Last year, cross-border payment flows globally surpassed $150 trillion, with business-to-business (B2B) payments accounting for a significant portion of this total [1].
As the world becomes increasingly interconnected, the B2B cross-border payments market is expected to grow steadily, driven by digital innovation and the rising tide of global commerce. According to Juniper Research, the global B2B payments market is projected to surpass $111 trillion by 2027, with cross-border B2B transactions making up a substantial portion [3].
One of the emerging trends in this sector is the use of stablecoins for cross-border B2B payments. Although the market for stablecoin-based cross-border B2B payments is currently around $20–$30 billion annually, it represents a niche within the broader market and is expected to grow [2].
Amazon, the e-commerce giant, has been exploring blockchain technology to potentially simplify cross-border payments for small and medium-sized enterprises (MSMEs) on its network. The company partnered with HSBC and payments infrastructure provider StraitsX for a demonstration of tradable digital tokens for cross-border payments [4].
Meanwhile, Wise, the digital money transfer service, has partnered with Standard Chartered's SC Remit to provide instant mid-market rate money transfers in 21 currencies across Asia and the Middle East [5]. Wise has also gained direct access to the Philippines' instant payments system this week.
Mastercard is also expanding its reach, launching Pay Local for APAC countries, enabling customers to link their credit and debit cards to local digital wallets. The company plans to extend Pay Local to Latin America, the EU, the Middle East, Africa, and Southern Asia [6].
On the other hand, Ant International, the financial services affiliate of Alibaba Group, is expanding partnerships with regional payments applications, focusing on improving Alipay's coverage in popular travel destinations. Alipay+, a wallet-focused cross-border payments solution by Ant International, already covers many players in the APAC region, with OCBC Bank in Singapore using Alipay to enable overseas payments [7].
This week, the Singapore Fintech Festival is taking place, with a focus on artificial intelligence and quantum technology. The event serves as a platform for discussions on the future of finance and the role of technology in shaping it.
In conclusion, the global B2B cross-border payments market is massive, measured in tens or hundreds of trillions USD, reflecting the vast volume of international trade and business transactions worldwide. As digital innovation continues to reshape the landscape, the market is poised for steady growth in the coming years.
The integration of technology in the realm of finance is significantly reshaping the global B2B cross-border payments market, with the use of stablecoins and blockchain technology being two key examples [2, 4]. According to Juniper Research, the global B2B payments market is projected to surpass $111 trillion by 2027, underscoring the market's immense potential and the growing influence of digital innovation on business [3].
