Cross-border payments grow with tech and regulatory support

E-commerce, real-time networks, and digital standards drive payment volume expansion

Cross-border payment volumes are projected to reach $290 trillion by 2030, driven by key trends including e-commerce growth, technology advancements, and regulatory reforms, according to Sanjeev Chatrath, Asia-Pacific Payments Leader and Partner at Ernst & Young.

"E-commerce has been driving a huge volume," Chatrath said during Sibos 2024 in Beijing, noting that 24/7 transaction demands across remote and on-site locations are fueling the rise in cross-border payments.

Regulatory support is another critical factor, as more regulators collaborate globally to ensure safer and faster transactions. "More regulators are coming together… and that is also contributing immensely to the high growth we are seeing in payment volumes," Chatrath explained.

Additional focus areas for financial firms include real-time payment networks, which are connecting more countries to facilitate instant transfers. "More countries are collaborating to transfer value on a more real-time basis," he said, attributing this trend to G20 initiatives for improving transaction speed and cost.

Adoption of ISO 20022 standards, financial crime prevention, digital currency innovations, and fintech collaborations are also shaping the future of payments, solidifying cross-border transactions as a central pillar of global financial markets.