The Dynamic Nature of Cross-border Payments in Asia – A Report from Kapronasia in Collaboration with Finastra

Global cross-border payment volume is booming, driven by increased economic connectivity and rapid technological advances. The sheer number of rails has led to intense market competition that is gradually redefining the cross-border payments landscape. Financial institutions and fintechs sometime cooperate with each other or bank on one currency corridor and compete on another.

The alternative payment rail boom comes as banks are working to align their technology infrastructure with ISO 20022 and API based connectivity. Since the new standard (ISO2022) will support 80% of transaction volumes and 87% of transaction value worldwide by 2025, banks have impetus to update cumbersome legacy information technology (IT) infrastructure to support the new standard. Expected benefits include the opportunity for higher revenue, better compliance and the reduction in cost per transaction enabled by stronger operational efficiency.

In The Dynamic Nature of Cross-border Payments in Asia report, written in collaboration with Finastra, we explore how to best take advantage of the cross-border payments opportunities afforded by the new rails, and what banks should look to when working with payment solution partners.