The Top 5 Cross-Border Payment Trends That Shaped 2024 

What a year it’s been for the world of payments! From breakthroughs in tech to surprising shifts in consumer behaviour, 2024 has kept us on our toes. Whether it’s the ways we send money, secure transactions, or even think about digital currencies, this year has been nothing short of transformative. But what were the key trends that stood out and reshaped the landscape? Let’s dive in and explore the innovations that made waves—and will set the stage of what’s to come. 

1. AI and Biometric Verification in Payments: The Future of Secure Payments 

As fraudsters get more sophisticated, the payments industry is fighting back with AI and biometrics, creating a formidable defence for identity verification. According to PYMNTS Intelligence, 51% of global users now rely on biometrics to verify online payments—proof that this technology is becoming a trusted norm. But its influence stretches beyond payments; biometric systems are also making waves in airports, stadiums, and event venues. 

Biometrics is even transforming the remittance sector. By simplifying onboarding and checkout, it ensures faster, more secure cross-border transactions while reducing friction—a win for users and compliance alike. In Vietnam, for example, embedding biometric verification led to a remarkable 72% drop in fraud-related accounts. As digital apps become the preferred method for money transfers, biometric verification seamlessly complements the transition to smooth, app-based experiences. 

Advanced biometric systems are integrating features like liveness detection (to prevent spoofing). This is why we have been proactive and introduced earlier in the year our RemitONE Liveness Feature™, which uses liveness testing and facial biometrics to detect fraud, like deepfakes or silicone masks when scanning faces. It ensures biometric data is from a real, physically present person. Integrating it into your onboarding process reduces financial risks and safeguards your company’s reputation. 

To activate this feature, reach out to us at sales@remitone.com. 

2. Real-time payments: The Fast Lane Keeps Getting Faster 

In 2024, the demand for instant, hassle-free transactions kept real-time payments (RTP) on a steep growth curve. Thanks to advances in open banking and cloud tech, payment systems have become faster, safer, and more user-friendly than ever. 

Just last month in the U.S., RTP set a jaw-dropping record with 1.46 million transactions in a single day. Globally, India remains the frontrunner, clocking 130 billion RTP transactions in 2023. And the momentum shows no signs of slowing down—according to ACI Worldwide, RTP is projected to grow by $285.8 billion and bring over 167 million more people into the banking ecosystem by 2028. 

The story doesn’t end there. Developing economies are doubling down on mobile-first approaches, boosted by smartphone adoption and supportive regulations, creating the perfect storm for RTP expansion. But with great speed comes greater risk—fraudsters are evolving too. In response, AI-powered security tools are stepping up, delivering real-time fraud detection and prevention to keep transactions safe. 

Real-time payments are reshaping the financial landscape, and if 2024 is any indication, the future is all about immediacy, security, and inclusivity. 

3. Collaborations & Partnerships: Driving innovation  

In 2024, the cross-border payments space thrived on groundbreaking collaborations, each aiming to make global money transfers faster, easier, and more inclusive. Here’s a snapshot of some standout partnerships: 

• Visa and Revolut: These two giants teamed up to launch Instant Card Transfers, offering real-time payments in over 78 countries. With just a card number, users can now send money globally at reduced fees and lightning speed. This move is a game-changer, especially for small businesses and freelancers managing international payments. 

• Tarabut Acquires Vyne: MENA-based Tarabut acquired UK’s Vyne to supercharge its account-to-account (A2A) payments. This step aligns perfectly with regulatory shifts in Saudi Arabia and the UAE, simplifying cross-border payments for both businesses and consumers in the region. 

• Mastercard and Equity Bank: Strengthening ties with Equity Bank, Mastercard enabled seamless cross-border transfers to over 30 countries across Kenya and Sub-Saharan Africa. By removing landing fees and ensuring recipients receive full-value remittances, this partnership addresses affordability and accessibility for underserved markets. 

• Nium and Kinexys: Nium and Kinexys (powered by J.P. Morgan), have taken their partnership to the next level, making international payments to Malaysia, Thailand, and Hong Kong smoother than ever. By validating bank account information in real time, they’re tackling failed payment errors head-on.  

No business thrives in isolation—collaboration is often the key to unlocking new opportunities and driving innovation. By working together, businesses can combine strengths. But let’s face it, finding the right partners can be a challenge, which is why we provide the RemitONE Hub™, where we can connect you with our trusted network of MTOs, banks, telcos, and payment gateways to elevate your business. 

Whether you’re looking to enhance your operations or break into new markets, collaboration is the way forward. So, if you’re interested in discovering our network then just send us a quick email at sales@remitone.com. 

4. CBDCs: Are we getting there? 

Central Bank Digital Currencies (CBDCs) saw significant momentum globally, with 134 countries, representing 98% of global GDP, exploring their potential. Among the 44 active pilot projects, China’s digital yuan (e-CNY) stood out, processing transactions worth $986 billion this year, up from $253 billion in 2023. Projects such as mBridge—a cross-border CBDC initiative involving  Saudi Arabia, UAE, Thailand, and China (including Hong Kong)—highlight growing efforts to enhance international financial systems. 

Frontrunners like Nigeria, Jamaica, and the Bahamas focused on expanding their retail CBDCs to improve financial inclusion, although adoption remains slow. Meanwhile, in the West, the U.S. joined global pilots like Project Agorá, and the EU made strides with its digital euro initiative, both addressing key regulatory and interoperability challenges. 

As we head into 2025, the spotlight will be on whether CBDCs can overcome hurdles like privacy concerns, cybersecurity risks, and geopolitical rivalries to deliver their promise of reshaping global finance. 

5. Countries embracing Cryptocurrency and Blockchain 

The adoption of Blockchain and cryptocurrency soared this year, with many countries taking bold steps toward integrating these technologies into their economies. A report from TripleA revealed that over 560 million people worldwide now own cryptocurrency, marking a 34% increase from the previous year. ChainAnalysis findings found India, Indonesia, and Vietnam led the charge, driven by the growing need for financial inclusion, particularly in areas with high inflation or currency instability. 

One of the standout developments is the growing trend of integrating blockchain with AI and privacy-enhancing tools like zero-knowledge proofs, which aim to make blockchain interactions more secure and confidential. This combination is increasing confidence in decentralised systems, making them more attractive to both businesses and governments. For instance, the UAE continues to lead with projects like the Dubai Blockchain Strategy, aiming to make the city fully blockchain-powered. They’ve already achieved significant milestones by migrating all applicable government transactions to the blockchain platform, enhancing transparency and reducing bureaucracy. 

Other countries in Central and Southern Asia, like Indonesia and the Philippines, are also embracing crypto, with growing merchant services and DeFi applications. This grassroots adoption, particularly in lower-middle-income (LMI) nations, shows how crypto is helping bridge financial gaps for millions. 

The trend is expected to continue upward, with further integration of blockchain into national economies and the rise of regulatory clarity. Many countries are now adjusting their frameworks to better accommodate crypto use while mitigating risks. The European Union’s MiCA regulation, for example, is paving the way for more institutional involvement. Expect to see more countries adopting blockchain for government-backed digital currencies and public services, while stablecoins remain crucial in regions like Sub-Saharan Africa for remittances and payments. 

This year has proven to be a milestone year in the evolution of the payments landscape.  As we prepare for the challenges and opportunities of the future, one thing is clear innovation will continue to be the driving force behind progress in payments and finance. With tools like our biometric liveness feature and a global network to tap into, we’re here to help you innovate, expand, and stay secure.  

Ready to elevate your game? Get in touch with us at sales@remitone.com to learn how our solutions can help you stay ahead in this fast-evolving landscape.  

Payments Rewired: Blockchain’s Impact on Remittances | IPR Global 2023

In this instalment, we traverse the corridors of Open Banking’s impact on cross-border remittances, harnessing AI’s potential for efficiency, and navigating the realm of blockchain-based solutions. Buckle up for an insightful session through the dynamic intersection of finance, technology, and innovation. 

Moderator 

• Lindsay Lehr, Managing Director, PCMI 

Panellists: 

• Walter D’Cruz, Director, Moneo Solutions 
• Sukhi Srivatsan, Head of Account Management, AZA Finance 
• David Lambert, CEO, Paycross 

How does open banking facilitate cross-border remittances and interoperability between financial institutions? 

 Let’s first understand what open banking is before diving in. David summarises it as an instant domestic bank transfer system. This essentially allows third-party entities access to users’ financial data via APIs, enabling them to make payments on behalf of the user. Walter expanded on this, emphasising how real-time payments and data exchange are subsets of open banking. He highlighted the challenge it poses to direct debit and recurring payments, especially in merchant-initiated transactions. 

David also shed light on Open Banking’s potential as an alternative payment method by making instant payments by just scanning QR codes; however, he notes its limited spread in the market. Drawing parallels with established systems like PayPal or Apple Pay, he stressed the need for better branding and consumer familiarity to propel Open Banking into a mainstream payment method. Moreover, the discussion linked Open Banking to Central Bank Digital Currencies (CBDCs), foreseeing their role in accelerating international payment rails for faster digital currency. However, concerns were raised about CBDCs being entirely under central banking control, prompting potential government involvement due to public apprehension. 

How can AI be leveraged to enhance the accuracy of remittance transactions and improve the user experience?  

Sukhi highlighted critical pain points faced at AZA Finance when it came to liquidity projection and forecasting for their clients. Addressing the need to ensure sufficient currency availability at the right time and place without inflating costs for clients. To tackle this, they created an internal model that utilised historical client data to predict future growth patterns, aiding in better preparation for customer demands and enabling proactive measures such as potentially offering increased liquidity when moving to new markets. 

However, David expressed scepticism about the reliability of predictive AI for precise forecasting. He highlighted the limitations of AI, emphasising its dependence on the data it’s fed and its inability to independently form entirely accurate projections due to various external factors influencing trends. He believed AI must be heavily controlled, such as by setting rule parameters and cautious utilisation, to prevent misleading or inaccurate predictions. 

Acknowledging this, Sukhi agreed that human involvement was crucial. While AI forecasts might not be pinpoint accurate, they allow for better-informed decisions. 

Walter countered common fears around AI. He emphasised AI’s role in expediting data analysis by enabling quicker translation of data into actionable insights, thereby saving time and effort. Walter advocated for a practical approach, distancing from rigid rule parameters, which is especially beneficial for small to medium-sized enterprises (SMEs) that often struggle with sourcing and analysing multiple data sources to make informed decisions. This flexibility allows smaller businesses to compete and innovate alongside industry giants. 

What are some real-world examples of successful blockchain-based remittance solutions?  

Walter sees blockchain as a global equaliser capable of transferring value across boundaries in real time. However, he underscores the importance of recognising blockchain independently from central bank digital currencies (CBDCs) and cryptocurrencies, as they still involve inherent complexities like exchange rates and associated costs. However, the challenge of decentralisation may be difficult for society to embrace. 

David, on the other hand, points out a fundamental issue: the persisting limitations in the speed of money movement due to technological and regulatory barriers. He notes that blockchain doesn’t inherently address this challenge, especially with governments increasingly advocating for CBDCs, which introduces another layer of complexity and opposition. 

Furthering the conversation, Walter delves into the intricacies of technological efficiency. He cites an example of banks implementing cheque scanners to streamline verification processes, yet this technological enhancement didn’t significantly impact on the time taken for the money to be deposited into bank accounts. This prompts doubts about the effectiveness of new technologies in speeding up financial transactions. There is the possibility for a potential paradigm shift if major retailers, such as Amazon, embed cryptocurrencies. There is also an opportunity for the adoption of blockchain within the remittance industry; however, there needs to be collaboration among stakeholders to lay down a functional framework and process. This collective effort is crucial to overcome the hurdles and ensure a more meaningful integration of this technology into the financial landscape. 

What next?   

At RemitONE, our commitment is to provide you with cutting-edge technology, compliance solutions, and expert guidance to navigate the ever-evolving landscape of remittances. Whether you’re just starting out or looking to scale your business, we’ve got you covered.  

Want to see how RemitONE can elevate your business? Book a free consultation with our experts today! 

The Future of Remittance – The trends and strategies that will shape 2021

The World Bank predicted that global remittances would decline by 20% as a direct result of the COVID-19 pandemic in 2020. It remains to be seen if there is any truth to that shocking figure but one thing is for sure – the sector suffered in 2020 and continues to do so in 2021. The question is, are we already on the road to recovery? And if not, how do we get there?

We spoke to three of our clients and partners from three different regions to gather their thoughts and gain some global insight on what lies ahead for the money transfer industry in 2021 – Hugo Cuevas-Mohr, President & CEO of Mohr World Consulting, Walter D’Cruz, CEO of Moneo Solutions and Nadeem Qureshi, CTO at USI Money. Our very own associate sales director Oussama Kseibati quizzed these thought leaders on the key strategies, the technological innovations that might start to emerge and how traditional agent-based MTOs should be reacting to them.

A year of recovery

Oussama began the discussion by reminiscing on how 2020 was a year that necessitated a wider move to digital finance for the entire financial sector: “For remittance, this meant an increase in the use of digital solutions for cross-border payments.” This included a shift to a surprising number of traditionally cash-based agents using digital means to serve clients, with around 60% of domestic and international cash transfers taking place online.

So the stage has already been set. But according to Hugo, if 2020 was a year of forced change then 2021 is going to be a year of resilience and leaning into the challenges posed by anomalies such as COVID-19 and Brexit. From where he stands, the remittance sector has already proved itself to be a resilient force. Indeed for Hugo and Mohr specifically it has been a very challenging time. Their target market is Filipinos sending money home and many Filipinos working in the UK have seen their incomes reduce or disappear completely in the last 12 months as they tend to work in medical and home care sectors.

He explains: “The era of COVID-19 is an uncertain one and that uncertainty is one of the main issues for the global remittance industry, especially when trying to predict recovery. However, despite the issues, the money transfer industry has seen a lot of recovery and migrant communities are continuing to send money to their families, regardless of changes in their own employment situation.”

Nadeem agrees and asserts that: “Despite the decline last year, the money transfer industry is a resilient one and is a sector which will certainly improve a lot faster than many others.” They also both agree that while they feel recovery is indeed already on the cards, we’ll need to wait until we see the data before we draw any solid conclusions.

Strategies for success

Of course, while the sector might be incredibly resilient, it is also far from bulletproof. This means there are going to need to be some solid strategies to help traditional agents-based actors adapt to the digital push of 2020. The primary trend from which all other trends seem to emerge is a mass migration into the digital realm. This will be particularly relevant for small-medium MTOs, as they will have the flexibility to push further into digital solutions as the industry continues its recovery.

For Nadeem, however, he feels it’s the medium-large institutions that will be leading the way. He explains: “Many of these larger MSBs will be down-streaming activities, hoping for increased access to expanding pay-out networks and other digital solutions, such as e-wallets. As the industry recovers and the needs of larger business begin to grow again, the MSBs will also be looking for new ways to grow too, and this will heavily centre on the digital push.”

Oussama then turns the focus onto blockchain and cryptocurrency, stating: “As a direct result of the pandemic some currencies are going to be more volatile and people could seek safe havens in cryptocurrency, which is something many banks are already doing.”

Walter agrees on this increase in blockchain adoption, which is being fuelled by the mainstream capital markets. He adds: “The popularity and interest surrounding blockchain has been growing for several years now but in 2020 we had begun to see it really explode. As well as the obvious focus on cryptocurrency such as bitcoin, blockchain is also being used by enterprise governments and financial institutions to assist with seamlessly managing the exchange of value.” 

Hugo, meanwhile, believes that there will be increased pressure on MTOs for transparency when it comes to fees and FX rates and that blockchain will definitely help with this. And with major names such as JP Morgan already throwing their hats into the ring, blockchain could very well end up being the major player that catalyses recovery as we move deeper into 2021. He also feels that we’ll be seeing more companies working internally to lower costs and more partnerships and integrations by year’s end.

Derisking and the challenger bank solution

According to Hugo, 2020 was the year of the digital tsunami and 2021 is going to be the year of the blockchain and cryptocurrency tsunami and he feels this is going to have a major impact on derisking, which is worse in some countries than in others but is still a global problem. He does also believe, however, that challenger banks might be the solution as long as they are properly integrated with fintech.

He says: “The position of banks as integrators of other services might be making it easier for other banks. This industry has to rely on these partnerships between the new banks and the fintechs and allow them to create solutions together. COVID has certainly pushed that forward, which I guess you could say is something of a silver lining.”

Above all, however, he believes that it’s creativity that is pushing the industry forward and he is inspired by all of the new players doing the groundwork in that regard. Indeed, he feels that’s where the potential for blockchain comes in. 

Oussama asks whether there are “solutions out there with companies acting as an aggregator to open up space as a quicker route to market for smaller MTOs and whether or not the big banks will change their attitude towards MTOs accordingly.” He adds: “With HSBC being fined £1.2 billion as a result of derisking recently, it’s unlikely the larger banks are going to shift their viewpoint but challenger banks are coming through to fill that space.”

According to Walter: “The reason they won’t support MTOs is that you’re not only essentially taking their business away by cutting into a piece of their pie but in their eyes, the risk involved is greater than the value that MTO might bring to the table and that’s all down to the fact there’s a lack of transparency between the bank’s compliance and the MTO.”

For Nadeem, meanwhile, he can see major bank attitudes towards derisking getting worse as the cost and the risk in terms of the fines is just too great compared to the benefits. However, he believes the challenger banks might offer a solution here. He explains: “The challenger banks entering the market are not necessarily going to solve the problem but the smaller MTOs looking for partners are going to have a much better chance at finding partnerships with these challengers than their larger counterparts.”

Then, of course, there is the impact of Brexit to unpack and digest. Generally speaking, our talking heads concluded that there is no need for MTOs to panic as long as they can learn to adapt. There are certainly going to be losses for any MTO based in the UK or Europe that deals with those markets, but London will remain a major financial centre and the centre must hold. For more on their thoughts, you can read our full piece on what Brexit means for the remittance sector – https://www.remitone.com/brexit-is-a-done-deal-but-what-does-that-mean-for-the-remittance-sector/

Will 2021 be the year of innovation or survival?

Walter feels 2021 is going to be more about simply “getting through it” than anything else, but that doesn’t mean he’s without hope. He explains: “I don’t necessarily think this year will initially be about the deployment of new technology. A lot of businesses are still recovering from the fallout of the pandemic so they don’t necessarily have the resources available to do a complete revamp.”

The improvements, he feels will be in an “explosion of partnerships,” because fintechs don’t have the resources to do everything alone, whether that’s compliance, risk or customer service. So they will need the help of both larger partners and the ‘little guys’, such as MTOs. He continues: “More connections and lower costs are going to be the case, broadly speaking for 2021 and it’s concepts like the RemitONE ecosystem that are going to help add value across the whole chain.”

Hugo agrees that 2021 is going to be a year of partnerships and collaboration and a shift in mentality across the board. He argues that MSBs should “forget about doing everything themselves. Everything will be almost modular because, particularly for the smaller companies, somebody else will be able to do one specific thing better and cheaper than you can.” Right now it would appear that we’re living in a world of APIs and developments that are great for small companies which can lower their costs and gain access to these solutions, whether that’s blockchain or something we haven’t even seen yet.

Nadeem, meanwhile, speaks of an e-digital compliance evolution: “When you have a sector with a large amount of competition it’s always going to be about who can provide the best user journey. Digital footprints are starting to grow and Fintechs are challenging regulators and pushing them to improve things, whether that’s through something as advanced as iris scanning technology or as simple as syncing their platform with social media to onboard customers more efficiently.” 

As Oussama sums up: “It’s going to be a year of smaller MTOs challenging the way things are being executed from a more modular approach through blockchain or other methods and we will continue to see this evolution going into 2022 and beyond.”

A beacon of hope

Throughout the talk, our experts also touched on several other more specific topics regarding the regulatory uncertainties in the Nigerian market to the general emerging markets in the African continent and the cost of acquiring new customers. To see the whole discussion for yourself, you can do so right here.

But the session ended on a resolutely positive note. Our experts spoke of advice for start-up money remittance businesses with no prior experience of the business and suggested that it was still a sector ripe with potential as long as these aspirant start-ups were willing to learn, read, research and understand the market. 

They also reiterated what appeared to be the crux of the discussion – that all the different strands of the financial sector need to start working together and forging deeper connections if they hope to succeed and thrive in 2021. That will lead to greater transparency, lower costs and more innovation and RemitONE’s deep ecosystem and malleable compliance network is the perfect middleman to help build and maintain those connections.

For more information or to speak to one of our experts please email marketing@remitone.com