Key Points Discussed in Point Zero Forum Discussion
The "Evolution of cross-border payments: Next-gen solutions" conference, organized by Elevandi in partnership with the BIS Innovation Hub, the Monetary Authority of Singapore, and the Swiss National Bank, brought together experts from the BIS, central bank stakeholders, and industry commentators to discuss the future of cross-border payments.
1. Adoption of Alternative Payment Methods (APMs)
Businesses are moving towards faster, cost-efficient alternatives such as real-time rails, account-to-account (A2A) payments, and digital wallets. Innovations like Brazil’s Pix, India’s UPI, and Europe’s SEPA Instant showcase the potential for real-time, bank-to-bank payments that reduce intermediaries and settlement times dramatically. Digital wallets, especially in mobile-first economies, enable new use cases like remittances and gig economy payouts.
2. Integration of Central Bank Digital Currencies (CBDCs)
Over 130 countries are exploring CBDCs, which can streamline settlement processes, reduce foreign exchange costs, and improve end-to-end traceability—crucial for heavily regulated sectors.
3. Growing Use of Stablecoins
Stablecoins are becoming a key instrument for cross-border payments, with 90% of financial institutions actively integrating them. Enterprise demand is validated by major acquisitions and the creation of networks such as the Circle Payments Network, which enable real-time settlement infrastructure rivaling traditional networks in high-volume corridors.
4. Expansion of Real-Time Payments (RTP) Globally
Momentum for RTP is rising worldwide, with key developments including the U.S. FedNow service adapting ISO 20022 standards for instant payments, and widespread adoption of the SEPA Instant Credit Transfer within Europe facilitating instant cross-border euro transactions.
5. Strategic Modernization for Competitiveness
To compete effectively and scale globally, businesses and financial institutions must modernize their payment strategies by incorporating these new payment rails and technologies, rethinking risk frameworks, and ensuring openness and interoperability of payment systems to support cross-border trade growth.
The conversation also covered the importance of adoption, coordination, and meeting users where they are in the context of new technology. However, challenges remain, such as interoperability, which is necessary but not cheap, and inclusivity, particularly in retail stablecoin acceptance and smartphone technology adoption in some markets.
Quantum computing was discussed as a potential challenge for encryption and security in the cross-border payments space. On regulation, the biggest challenge is on the consumer side, and adapting existing regulations may be the best approach.
The panel included Livia Benisty, Milind Sanghavi, Varun Paul, and Arjun Vir Singh. The industry focus remains on speed, cost, and transparency, but there are myriad ways to address each issue. Project Nexus, the BIS's instant cross-border payments project, was a key focus of discussion at the event. Partnerships continue to be important in the cross-border payments industry.
In summary, businesses should focus on embracing alternative payment technologies (APMs, CBDCs, stablecoins), leveraging real-time payment infrastructure, and fostering collaboration across public and private sectors to ensure secure, efficient, and scalable cross-border payment operations in the future.
1. Emergence of Technology-Driven Business StrategiesIn the realm of finance and business, there is a growing emphasis on adopting technology-driven solutions, such as real-time rails, account-to-account payments, digital wallets, CBDCs, and stablecoins, to streamline cross-border payments and remain competitive.
2. Advancements in Cross-border Payments RegulationRegulatory adaptation will be crucial in facilitating the integration of new payment technologies, ensuring consumer protection while fostering innovation in the cross-border payments industry.
