Which is better for cross border payments

Answered at Feb 02, 2025

Choosing the best method for cross-border payments depends on several factors, including speed, cost, security, and accessibility. Here are some of the leading technologies and trends in cross-border payments:

Technologies and Trends

Blockchain and Stablecoins

Advantages: Blockchain technology, combined with stablecoins, offers faster, more cost-effective, and transparent transactions by eliminating intermediaries. Companies like Cedar Money are leveraging stablecoins to bypass traditional SWIFT systems, providing reliable and efficient cross-border payments[3].
Example: Cedar Money raised $9.9 million to enhance its stablecoin-based cross-border payment solutions, highlighting the growing interest in blockchain for international transactions[3].

Real-Time Payments (RTP)

Advantages: RTP is setting a new standard for speed and transparency in cross-border transactions. It promises to enhance cash flow and strengthen supplier relationships by offering instant settlement[2].
Example: 96% of manufacturers predict RTP will replace checks for outgoing payments, indicating a significant shift towards faster and more efficient payment methods[2].

AI-Powered Solutions

Advantages: AI enhances fraud detection, automates payment processes, and provides personalized customer experiences. It improves operational efficiencies and decision-making by analyzing vast datasets[1].
Example: AI-powered solutions are increasingly used to streamline regulatory compliance and improve transaction speed, making them essential for staying competitive in the global market[1].

Digital Wallets

Advantages: Digital wallets offer a secure and convenient method for managing money and conducting transactions across borders. They reduce the need for physical cash and cards, facilitating instant payments[1].
Example: Digital wallets are becoming popular for cross-border payments due to their ease of use and ability to store multiple currencies in one platform[1].

SWIFT gpi

Advantages: SWIFT gpi modernizes international transactions by enabling faster and more traceable payments with full transparency. It has transformed cross-border payments by improving speed and reliability[5].
Example: Over 4,000 financial institutions use SWIFT gpi, demonstrating its widespread adoption and impact on the industry[5].

Conclusion

The best method for cross-border payments depends on specific needs such as speed, cost, and security. Blockchain and stablecoins offer cost-effective and fast transactions, while RTP provides instant settlement. AI enhances efficiency and security, digital wallets offer convenience, and SWIFT gpi ensures transparency and reliability. Each technology has its advantages, and the choice should be based on the specific requirements of the transaction.