Demystifying Faster Cross-Border Payments: Key Takeaways (ft. Visa Direct)

In a recent discussion with industry experts Richard Meszaros, Visa Direct’s VP, Head of Cross Border Money Movement, and Sarah Beth Felix, Palmera Consulting’s CEO, we focused on the growing demand for faster cross-border payments, trends and challenges, and the importance of compliance for fintechs and other businesses. Here are 10 takeaways from our conversation:

1. Consumer demand for faster payments: Consumers increasingly expect real-time, cross-border payments across various devices. Fintechs must adapt to meet this demand.
   
2. Fast payments vs. instant payments: Fast payments can take days for consumers to access their funds, while instant payments provide access to funds within seconds. Instant payments empower both consumers and businesses giving them more control over their finances, which can be a competitive advantage for fintechs.
   
3. Compliance is key: Fintechs must prioritize compliance with AML, sanctions, and fraud regulations. Strong KYC procedures are essential for mitigating risks. Furthermore, leveraging data from payment rails can enhance compliance efforts. Banks and fintechs should collaborate to effectively use this data.
   
4. Cross-border remittances: The global remittance market is growing, driven by migration and the shift from cash to digital payments. Fintechs can capitalize on this trend by offering faster, more convenient remittance options.
   
5. Managing operational risks: Fintechs must carefully assess and manage risks associated with operating in certain jurisdictions. A threat-focused approach and collaboration with bank partners are crucial.
   
6. The importance of collaborations: Collaborating with banks, payment networks, and other financial institutions can provide fintechs with access to wider networks, regulatory expertise, and shared resources.
   
7. Interoperability: The future of cross-border payments may involve increased interoperability between different payment networks and apps.
   
8. Scalability and resilience: Fintechs should develop sustainable business models, and ensure their systems are scalable to handle increasing transaction volumes and be resilient to disruptions.
   
9. Regulatory landscape: Fintechs must navigate evolving regulations and strive to understand the spirit of the law. Collaboration with regulators can help shape a favorable regulatory environment.
   
10. Data privacy and security: Protecting user data and ensuring secure payment transactions remains a top priority for fintechs operating in the cross-border space.

Watch our full conversation here:

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