Cross-border instant payments could be one step closer
Cross-border instant payments gain traction, although the trend is not moving fast enough, say industry experts.
As the frequency of cross-border payments continues to rise, cross-border instant payments will slowly gain traction, given corporates’ need to quickly settle international payments in a global arena, says Andy Schmidt, vice president, global financial services at technology consulting firm CGI.
Andy Schmidt, CGI
"Traditionally, cross-border payments have been slow and expensive and the lag creates inefficiencies and extra costs for corporates that transact globally," he says.
"Cross-border instant payments is the obvious solution to this, and new digital money-transfer companies are offering solutions such as this while traditional banks have fallen behind."
According to CGI's Transaction Banking Survey 2019, published in September, corporate client satisfaction with main banking services providers has fallen below 50% for the first time since the survey began seven years ago.
Meanwhile, corporates are increasingly demanding digital, ‘best-in-class’ products and services but banks are falling short – just under half of all respondents said this is very important to them, but only 8% of banks were delivering on this.
The survey is based on more than 400 responses from 136 corporate practitioners working in their organization’s treasury or finance function and 251 banking services providers.
Companies such as Transferwise, WorldRemit, Payoneer and WorldFirst have raised their profile thanks to their ability to provide money transfer services at much lower prices than traditional banks.
While the majority of these companies focus on the C2C sector, opportunities abound in the $22 trillion cross-border payments market.
In July this year, World Remit stepped into the cross-border B2B market in Africa with the launch of World Remit for Business.