2024 Guide to Cross-Border Payments

?? “Cross-Border Payments in 2024: Mechanism Explained” by Vincent Muthee (Jan 25, 2024)??

?? Globalization is fueling the demand for secure, quick, and efficient cross-border payments, with the market exceeding $34 trillion. This growth attracts neobanks, fintechs, and money service businesses.

?? Cross-border (international) payments involve transactions between entities in different countries. They are crucial in e-commerce for purchases across borders.

?? Ideally, these payments range from seconds to days, based on intermediaries involved, and are operational 24/7. Fintechs and neobanks use smart contracts and new infrastructure to streamline these payments, overcoming traditional international payment challenges.

?? Types of Cross-Border Payments:

1. Credit Card Payments: Popular due to simplicity but involve currency conversion and fees.
2. Bank Transfers: Involves direct bank-to-bank transactions or through intermediary networks.
3. eWallet Payments: Uses apps like PayPal, with transactions usually in multiple currencies.

?? Benefits of Cross-Border Payments:

• Personalized customer experiences with various regional payment methods.
• Mobile-enabled, facilitating payments from any location.
• Supports the booming global B2C market, projected to reach $4,195.4 billion by 2027.
• Enhanced risk management with customizable authentication and fraud rules.

?? Payment Categories:

1. B2B: Largest share in international payments.
2. C2B: Includes e-commerce and tourism-related payments.
3. B2C: Salaries, wages, interest payments.
4. C2C: Remittances, the smallest market share.

?? Blockchain in Cross-Border Payments:

• Transactions occur over blockchain networks.
• Smart contracts ensure fast, transparent, and secure payments, usually within seconds.
• Efficiency is key, especially for e-commerce.

?? Conclusion: Cross-border payments are revolutionizing business by offering easier, quicker, and transparent international transactions, essential in today’s fast-paced world. ??????

To dive deeper, check out the complete article: https://droomdroom.com/cross-border-payment-explained/