Examining bank strategies for cross-border payments in the year 2024
In the first half of 2024, the global banking sector has witnessed a significant shift in cross-border payment services, as institutions seek to enhance their offerings and stay competitive. A recent report analyses the biggest news stories surrounding cross-border payments from banks in this period.
The report, which does not focus on advertisements or unnecessary information, aims to identify the areas banks are focusing on, how they are enhancing their cross-border payments services, and the companies they are partnering with to bolster their products or add new capabilities.
One of the most notable partnerships is between Fidelity Bank and PAPSS (Pan-African Payment and Settlement System). This collaboration, launched in Nigeria in 2025, aims to enhance cross-border payments across Africa. It enables instant, cheaper, and more secure local currency transactions, significantly supporting SMEs by removing trade barriers and aligning with the AfCFTA vision to foster intra-African trade.
In the US and Europe, banks have been partnering with private credit firms to expand corporate lending capacity, share technology platforms, and pool loans to meet larger deal demands. This innovation in financing structures signals a shift beyond traditional bank lending.
The Bank of England is advancing its Real-Time Gross Settlement system with features like synchronisation for interoperable settlement with foreign RTGS and distributed ledger technologies (DLT). This supports G20 goals to enhance cross-border payments by enabling faster, tokenised, and more coordinated settlement mechanisms.
Banks across the APAC region are integrating instant payment systems and API ecosystems to build scalable, cloud-native platforms. This innovation enables real-time cross-border transactions, leveraging advanced payment hubs to futureproof financial infrastructure for continuous innovation over the next decade.
PNC Bank's partnership with Coinbase focuses on expanding access to digital asset banking solutions, enhancing the integration of digital currencies into mainstream banking services, and broadening customer access to digital asset ecosystems.
These efforts collectively aim to streamline international transactions, broaden service offerings, and support emerging market SMEs and digital asset users. The regions of Europe and Asia have witnessed a high number of cross-border developments in the first half of 2024, with many banks working to improve their cross-border payments offerings or launch new ventures to meet the demand for easier payments.
Competition in cross-border payments has increased, with consumer money transfer companies, B2B players, and digital offerings posing challenges. Banks are focusing on partnerships as a strategy to improve their cross-border payment offerings, ensuring they remain competitive in this rapidly evolving landscape.
The report reveals that in addition to Africa, Europe and Asia are also experiencing a surge in cross-border payment developments, with banks partnering with innovative technology companies to fund corporate lending, integrate instant payment systems, and even embrace digital currencies in their services.
Furthermore, the report highlights the use of advanced technologies such as distributed ledger technologies (DLT) and API ecosystems in Asia, aiming to facilitate real-time cross-border transactions and futureproof financial infrastructure.
