Navigating the Future of Cross-Border Payments

At GFF 2023, cross-border payments were discussed in light of the G20's emphasis on seamless international transactions, addressing both outbound payments from India and inbound transactions for the global Indian expat community. 

"83 billion dollars’ worth of remittances happened in India in 2022 and 24% of the remittances received in APAC was from Indians sending money out. This is growing at 16% per annum in India."

Paroma Chatterjee, CEO, Revolut India at GFF 2023 

Revolutionizing Fintech with Seamless Cross-Border Payments 

Christine Tan, Head of the Financial Institutions Group at JP Morgan APAC, noted that by 2022, digital payments accounted for over half of e-commerce flows, with Asia leading the trend. However, challenges in cross-border transactions persist: 

• Access: Many Indians, particularly in smaller towns, struggle to access cross-border payment services. 
• Affordability: Converting Indian rupees into foreign currencies is often costly and complex. 
• Speed: Transactions typically take 2-3 days and involve high fees. 
• Security: Ensuring fund safety and transparent transaction tracking remains challenging. 

To address these challenges, Revolut, a global neo banking company and JP Morgan are focusing on: 

• Providing comprehensive digital solutions to enable all Indians to send money abroad effortlessly. 
• Offering competitive conversion rates and eliminating excessive fees. 
• Prioritizing same-day transactions through streamlined processes. 
• Enhancing transaction security and tracking with robust verification systems. 

Blockchain and DeFi  

Blockchain and decentralized finance (DeFi) play a crucial role in cross-border transactions. While blockchain technology offers 24/7 settlement and increased efficiency, it is expected to enhance rather than fully replace traditional systems. 

Future Outlook  

Cross-border payments in the future shall be driven by: 

• Innovations that address the evolving needs of global transactions. 
• Digital adoption that facilitates solutions supporting multiple payment methods. 
• Partnerships between fintech companies and banks to create seamless, affordable, and efficient payment solutions. 

Cross-border online payments require continuous innovation and strategic cooperation in their development. In Fintech and global payments, progress and adaptation are essential to keep pace with the sector's evolving nature.