Responsible innovation propels cross-border payment solutions into the future

Africa’s merchandise imports grew to US$706 billion in 2022 making the continent the next obvious choice for international merchants eyeing new markets. In South Africa, current exchange control regulations create barriers for global businesses wishing to settle their money out of the country thereby disincentivising others from expanding.?

But change is already in motion. As part of Precium’s women-focused audio series, Reclaiming Ambition , Jill Wilmans, Managing Director of Secure FX, discusses the need for new solutions in the cross-border payments sector from local providers while underscoring the importance of responsible innovation.?

Secure FX is an African leader in the cross-border payments and treasury sector.?

“We are specialists in navigating exchange control. And I use the word navigating because I think that really describes how we as a company move forward. It's not a tick box scenario, it's not a dedicated path, but it is a case of navigating and understanding what are the risks in payments, what is required from a regulatory point of view, and then seeing how to make it all work together,” says Wilmans.?

As a regulated and registered Treasury Advisor, SecureFX facilitates cross-border payments through an Authorised Dealer. Wilmans and her team are currently working alongside the Reserve Bank’s Intergovernmental Fintech Working Group (IFWG) to test new cross-border payment solutions and compliance technologies. The IFWG provides a ‘regulatory sandbox ’ where innovators can test their new products and services that push the boundaries of existing legislation and regulation responsibly, under the supervision of relevant regulators.

The appetite for cross-border payments innovation in South Africa

South African regulators are advocating for innovation, says Wilmans.?

According to the Africa Development Bank ’s latest macroeconomic report, the African continent is set to maintain its position as the second-fast-growing region, next to Asia. According to the report, next year “up to 41 countries across the continent will achieve an economic growth rate of 3.8% and in 13 of them, growth will be more than 1 percentage point higher than in 2023.” The growing interest from international merchants to access and sell to local markets signals that it is time for cross-border payment solutions to rise to meet the demand – from consumers and businesses – and South African regulators are responsive to innovative payment solutions.?

On her ability to create change in an industry steeped in legacy: “I didn't study finance and I don't come from a banking background,” says Wilmans. “And I think that makes all the difference because I don't have that attitude of ‘it hasn't been done before so it can't be done’.” Wilmans optimism for the industry is evident in her consistent effort to understand the landscape, its history, and potential.?

“I think if I had to say what is the one key thing that has got me to where I am now, it's knowledge. We're working with local regulators, we're working with international regulators, we're working with international clients who don't understand our environment. We're also working with local clients who don't understand our environment. So it really is a case of being the pinnacle of knowledge in this space. I've probably read the exchange control manual from front to back at least 300 times in the last two years just to make sure that there's nothing that I'm not aware of.”?

The paradox of responsible innovation?

To actively advance innovation in payments often requires regulatory evolution. This places the onus on innovators to play responsibly. “I think that there's been a lot of innovation in the fintech industry across the world in the last five years, but I don't believe it's all been responsible,” explains Wilmans. “I think a large portion of what is being done is actually just looking at a more cost-effective way of doing things, and potentially looking for loopholes.”?

“Our [Secure FX] solutions have not been trying to look at where we could find loopholes in the law, but rather to look at what the purpose of the laws and regulations are, and making sure that our solutions actually match that. For me, innovation is that sweet spot in understanding why something hasn't been done before, understanding what the benefits are if you do do it, and trying to find a balance between them.”

Wilmans’ approach emerged from a deep understanding of the challenges facing the industry, the problems business and individuals face when moving money across-borders, coupled with insight into what the future of payments could look like.?

Responsible innovation is a paradoxical combination of deep expertise and a beginner’s mindset – understanding your market and environment as fully as possible, but also being willing to challenge the industry norms and not take accepted wisdom for granted. Wilmans embodies this concept not only in her own professional career, but in the growth and management of her teams.?

Taking responsibility for ambition?

“There's so many words, there's so many opportunities to have your voice heard, but I think there's very few people who take responsibility once they have said something.” Wilmans credits her success at least in part to taking responsibility – and accountability – for the ambitions she sets.?

She further stresses the importance of making time for it. Ambition requires time in the working day, she says. “I need to give myself the opportunity to do research or think outside the box. [...] We expect our staff to be ambitious and to drive change, but we don’t give them the time to do it.”?

Secure FX under her stewardship was recently awarded the 2024 International Payments Service Provider of the year by Corporate Livewires Innovation & Excellence Awards for the work they do to ensure that funds move safely and efficiently, both in and out of South Africa.

Traditional institutions have lagged in their ability to provide affordable and efficient cross-border payment solutions. But innovation in the sector has allowed the development of more cost effective digital solutions with improved interoperability, alternative payment methods, and cooperation from regulators. Pioneers like Wilmans are set to lead the change. She ends with, “Sometimes I think to myself: we've achieved the impossible, not by trying to pretend that [the barriers are] not there, but actually by understanding what you're doing.”

As innovators and regulators collaborate to bring South African cross-border payments into the future, responsible innovation that reflects as much as it forecasts will enable businesses and consumers to participate meaningfully in the global economy.?

Reclaiming Ambition is a women-focused audio series developed by Precium , the series delves into ambition and innovation seen through the lens of women in executive roles across categories. Precium is the first African payment platform purpose-built for enterprise. The company helps businesses optimise payment performance, automate financial operations, and craft extraordinary customer experiences through its modular payment platform.