Top 5 Cross-border Payment Key Trends in 2024

Cross-border payment is a lucrative market, and this market is predicted to reach 356.5 billion USD by 2032. Many businesses that have been operating in this field are still trying to find the latest directions for their businesses.

Next, let's join FinFan to learn about the top 5 new trends in the field of cross-border payments in 2024 that can be applied in the Vietnamese market.

1. Transparency in the spotlight is the first cross-border payment key trend.

After many financial scandals were exposed in developed countries such as the PricewaterhouseCoopers scandal in Australia, a series of shocking financial scandals of Samsung, Toshiba, Apple..., and a series of market manipulation of cryptocurrency markets such as FTX and most recently Binance.

National governments have agreed to introduce bills to regulate their countries’ financial sectors more tightly and the G20's Roadmap for enhancing cross-border payments – and more critically the targets it needs to meet by 2027.

Transparency here is clearly shown through 3 factors:

• transparency in sender and recipient information based on KYC and AML checks,
• transparency in the accounting and auditing process of multinational companies,
• and finally, transparency in using money for future profitable investments.

2. Closer cross-border connections

Over the past few years, multiple countries have linked their financial systems to increase their cross-border interconnectivity and so enable fast, low-cost payments on common regional corridors. In Africa, PAPSS is increasing connectivity on the continent, while Singapore has connected with several key corridors – including Thailand and India.

Most recently, the combination of central banks of Southeast Asian countries together to contribute to promoting multilateral cross-border payments in the region and around the world is a typical example of closer cross-border connections.

3. The further rise of cross-border SMEs

*Small and medium-sized businesses around the world are increasingly accessing international markets, particularly in areas such as e-commerce where the tools to access global and regional marketplaces have become increasingly sophisticated, including through virtual cards and multicurrency accounts.

B2B and B2B2X-focused players have increasingly been waking up to the potential of the SME market, and in 2024 we can expect more products and more businesses to embrace this potential, particularly in emerging market hubs around Latin America, Africa, and Southeast Asia.*

*Source: FXCIntelligence

4. Generative AI in cross-border payments

AI has been developed and brought a lot of interesting benefits to those who experience the wonderful things it has to offer.

2024 promises to be a year for launching many new applications in the field of cross-border payments, typically technology to help recognize the faces and payment needs of app users (for example, paying bills in foreign countries, paying for air tickets, train tickets, etc.) and offering incentives suitable for their needs.

5. Banking’s B2B fightback is the last cross-border payment key trend.

*Over the past few years, we have spoken to many CEOs of B2B cross-border payments players, and when we ask them where they get their customers from, every single one has told us the same thing: banks. Banks are the biggest source of new customers to non-bank B2B payment players, and for many, it is because the banks have not been focused on this area.

However, we expect this to change in 2024. More and more banks are exploring strategies to economically service the smaller end of the B2B segment (and using our data to improve their strategy in this area), and we expect a stronger response from the banking industry this year.*

*Source: FXCIntelligence