The Green Sheet Online Edition
June 23, 2025 • 25:06:02
Solving the real issues in cross-border payment systems
Cross-border payments have become a bigger part of how merchants do business, often without them even realizing it. From international customers at checkout to overseas suppliers or platforms handling settlement behind the scenes, global payment flows are now part of everyday operations.
But making those flows reliable and cost-effective is still harder than it should be. Domestic payments have come a long way. In many markets, transfers are instant, low-cost and easy to track. That same experience hasn't yet reached cross-border payments, where infrastructure is still fragmented, and processes are more difficult to standardize.
That's beginning to change. Global payments are growing fast, with revenues expected to reach $2.3 trillion by 2028, according to PCG's Global Payments Report 2025. Digital wallets alone are forecast to account for over 40 per cent of ecommerce transactions by 2025, and instant payments are set to make up more than 20 per cent of global transactions by 2028.
As this volume increases, pressure is mounting to improve cross-border infrastructure. New systems, including real-time payment rails, open banking, digital wallets and blockchain infrastructure are helping reduce the friction that merchants and their customers often face.
These technologies are improving speed, transparency and reach, while lowering costs. And they're making it easier for merchants to serve global customers without needing to navigate layers of outdated infrastructure.
Why outdated infrastructure still causes problems
The core problem isn't just the number of payment methods. It's the way they connect. Legacy systems often route payments through multiple intermediaries, each adding delays, fees and risk. That impacts merchants on all sides, from settlement times and currency conversion costs to customer experience and cart abandonment. This is especially true for businesses selling into emerging markets. In regions where access to traditional banking is limited, merchants often face lower conversion rates, longer delays and fewer reliable settlement options.
But when infrastructure improves, and when it's built around local context, these markets become far more accessible and profitable.
Open banking is helping remove unnecessary steps by allowing licensed providers to connect directly to customers' bank accounts. This can make payments faster, cheaper and easier to verify. In some regions, open banking is already being linked with domestic real-time payment schemes to support direct account-to-account transfers between countries.
Digital wallets are also playing a big role. They're especially effective in mobile-first regions where many consumers don't have traditional bank accounts. Wallets that support cross-border transactions can help merchants reach these customers more easily, offering faster settlement and more flexible options at checkout.
Blockchain is beginning to make its presence felt in settlement, particularly in B2B flows. Stablecoins and permissioned ledgers are already being tested as a way to streamline clearing and improve visibility.
These systems are still developing, but they offer a new way to handle cross-border transfers without relying on traditional clearing houses.
The importance of systems working together
What matters now is how all of these technologies work together. One system alone won't fix the complexity merchants face. But better integration, between wallets, APIs, settlement platforms and FX providers, can make a real difference.
Interoperability is a key challenge, especially when it comes to connecting real-time systems across borders and aligning regulatory and technical standards.
We're also seeing infrastructure gaps narrow when providers think locally. This means offering region-specific payment methods, handling currency conversion in-market and working with domestic partners who understand the regulatory environment. For merchants, that often translates to faster onboarding, better approval rates and lower cost per transaction.
Remittances show how this plays out at scale. In many emerging markets, inbound remittances are a major source of income. Yet they're often expensive to send and slow to arrive. When cross-border systems improve, more of that money reaches the people it's intended for, and it arrives more quickly.
That same principle applies to merchant settlements, payouts and B2B flows.
Ultimately, the goal is to make cross-border payments feel more like domestic ones. That means digitized, faster, more transparent and less expensive. It also means giving businesses better visibility into where money is, when it will arrive and how much it will cost to get there.
These details matter when you're managing cash flow, serving international customers or working with suppliers across multiple markets.
Another piece of this puzzle is education. Many businesses still hesitate to expand internationally because of perceived complexity or uncertainty around payments. The more providers can do to demystify the process, whether through clearer onboarding, better reporting tools or more transparent pricing, the easier it becomes to build trust and scale globally.
There's also a growing need for partnerships that go beyond just payment processing. Businesses are looking for solutions that combine local insight, technical reliability and regulatory understanding.
The providers that can offer that end-to-end support will be the ones who make cross-border payments not just possible, but sustainable and scalable in the long term. For merchants, that means fewer delays, clearer pricing and broader reach. And for the wider ecosystem, it means a foundation that supports fairer, more inclusive growth.
The decisions being made today—about where to invest, what systems to adopt and who to partner with—will shape what the cross-border experience looks like tomorrow. Merchants have more options than ever before. And that means there's more opportunity than ever to get it right. 
Zaki Farooq is CTO and co-founder of PayFuture, www.payfuture.net, the local payments connector for emerging markets. Contact him via LinkedIn at linkedin.com/in/zakifarooq.
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