Modernising cross-border payments

Banks are increasingly collaborating to tap into domestic payment networks and capitalise on the massive low-value cross-border payments market, now worth $12 trillion in global outflows. Discover why agile partnerships are trumping complex, costly infrastructure builds for banks like yours.

Digital transformation is reshaping the global economy, and one undeniable trend is surging demand for seamless cross-border payments. But for banks, capturing a share of this lucrative revenue opportunity alone is far from simple.

Thanks to the rise of instant domestic payment rails, consumers and businesses alike now expect fast, affordable ways to transfer money internationally and locally. And while agile payments providers have sprung up to meet these new demands, banks are slower to modernise their services due to complex infrastructure and intermediary-heavy processes required for cross-border transactions.

This presents a critical juncture for banks - to remain competitive, they must rethink their global payments infrastructure. One promising solution is to plug directly into pre-existing domestic, instant payments rails. But this requires banks to develop international central bank relationships, navigate diverse regulations, upgrade systems and build local expertise - a tall order even for the largest global players. Many banks are turning to partnerships to leverage these domestic rails and meet the evolving demands of the retail segment without a major technical overhaul or seismic logistical shift.

Powering innovation through domestic leaps

In recent years, the domestic payments landscape has been transformed by a wave of innovations. Now, real-time payment rails exist in over 100 jurisdictions globally and counting. Along with trailblazing instant payment networks like PIX in Brazil and UPI in India, the bar has been raised, shaping consumer expectations for payment efficiency.

For providers aiming to deliver instant, affordable solutions, direct access to these domestic payment rails is crucial. Tapping into existing local payment systems offers a more efficient path for global transactions, sidestepping the delays and costs of traditional intermediary-heavy methods. The key advantage? Reduced operational expenses. By leveraging established rails, providers and banks can avoid the significant costs of building new systems from scratch and the inherent costs of using many intermediaries. This delivers a faster, cheaper and more transparent way to process international payments.

Direct connections to payment systems offer powerful advantages

However, reducing operational costs is just the tip of the iceberg. Establishing direct connections to payment systems can deliver a host of additional benefits for providers. Chief among these is greater control. Providers with direct connections can manage transactions with more visibility and efficiency, enabling them to respond faster to customer needs, make real-time processing adjustments and enhance overall service quality. So, for example, you can quickly send money from the UK to Australia, rather than waiting days with traditional overseas transfer methods. You'll know with certainty when your money will arrive and how much will get there.

Direct connections also facilitate better risk management. By having clearer visibility into transactions, along with better access to data, providers can identify potential fraud or compliance issues more quickly, strengthening their ability to safeguard customer funds. Importantly, the transparency of direct connections builds customer trust, as clients can track the transaction status throughout the process. And, what’s more, the increased efficiency, automation and lower transaction costs of domestic faster payment rails make cross-border transfers cheaper compared to traditional overseas transfers.

The advantages of going direct are clear. However, the process of developing and maintaining these direct relationships is extremely time-consuming, costly and complex. Banks typically focus on a wide range of products and services beyond just cross-border payments, so dedicating the significant resources and time required for direct payment system integrations just isn’t a viable option. According to Accenture, on average, global consumers have around six or seven different banking products spread across different providers. And cross-border transactions are just one part of the complex puzzle that banks must manage.

Instead of investing time and money on building their own global payment networks just for this one product, banks can partner with providers who have already established robust, complex payment networks. This allows banks to tap into those existing capabilities without having to make a major investment themselves. That way, banks can focus their resources on developing other critical products and services to better serve their customers.

Wise Platform: A trusted partner to global banks

That’s where Wise Platform can help. Our global payments infrastructure enables banks and enterprises to enhance their cross-border payments capabilities without the headaches of building or buying their own infrastructure. By partnering with Wise Platform, banks can seamlessly integrate our global network of direct connections to global payments systems like HUF, PHP, EUR, GBP, AUD and SGD.

Top global banks like Morgan Stanley, Standard Chartered, Nubank and Monzo have chosen Wise Platform as their trusted global payments infrastructure. Our strategy of building direct connections to payment systems worldwide and forging partnerships with banks and providers allows us to give you and your customers unparalleled transaction control, visibility and low-cost payments.

But that's not all - with our real-time treasury management, operational automation and scalable compliance, we deliver an exceptional, frictionless experience for your customers.

Collaboration unlocks success

Domestic payment rails offer the fastest, most cost-effective way for banks to provide transparent, instant payment services. But building this network from scratch would be incredibly time-consuming, expensive and difficult for banks weighed down by legacy systems and reliant on a web of intermediaries for global payments - leading to product launch delays and high costs.

That’s why collaboration will be the key to the future of global payments. By leveraging Wise Platform's expansive global network - developed through intricate relationships with governments and central banks, direct integrations to domestic payments systems and scalable tech-driven processes backed by robust compliance - banks can provide their customers with seamless cross-border payment services, increasing satisfaction, driving loyalty and growing revenue.

Learn more about Wise Platform