Why we must build trust and reduce friction in cross-border payments
By Chris Partridge
The payments industry has always offered an immediate view of the global economy.
Unlike lagging indicators such as trade reports or GDP releases, payments data reflects economic activity as it happens — capturing shifts in trade flows, supply chains, and financial connectivity in real time. In that sense, payments act as a barometer for global commerce, registering both the pressure points and the progress of an increasingly interconnected world.
Yet despite decades of innovation, three persistent friction points continue to define cross-border payments: delays, cost, and lack of visibility. These are becoming less tolerable in a world where domestic payment systems have set new standards for speed and transparency.
Businesses and institutions operating across borders are no longer willing to accept multi-day settlement times, opaque fee structures and limited tracking capabilities as the norm.
Global South takes the lead
The traditional narrative has cast so-called “developing markets” as followers in financial innovation. Yet the reality today is quite the opposite, with markets across Africa, Southeast Asia, and Latin America, not just adopting new payment technologies but actively shaping them. And for good reason. Of the $905 billion in global remittances in 2024, $685 billion flowed directly into low- and middle-income countries, demonstrating the huge growth potential in these economies and the need to shape the payments ecosytem.[1]
Real-time domestic payment systems, mobile-first financial ecosystems and innovative regulatory approaches are emerging from these regions, often leapfrogging the barriers created by legacy infrastructure in more established markets.
In fact, according to Boston Consulting Group’s 2026 Beyond Payments: Unlocking Africa’s Second FinTech Wave report, with 40% of adults in in Sub-Saharan Africa using mobile money, Africa now accounts for 74% of global mobile transaction volumes globally.[2] Simplified onboarding, agent networks, and digital KYC have brought millions into the formal financial system for the first time.
This shift has important implications for how we think about the future of cross-border payments. Much of the current conversation is dominated by blockchain-based settlement rails and stablecoins.
Making cross-border transactions seamless
These technologies will play a role in the evolution of the payments ecosystem. However, there are other immediate structural opportunities that are receiving a fraction of the airtime, not least the importance of the interoperability of domestic payment networks across borders.
In many markets, the necessary infrastructure is already in place at a domestic level. The real challenge — and opportunity — lies in linking these systems to enable seamless, interoperable cross-border transactions. This approach addresses the core frictions of speed, cost, and transparency more directly than overlay solutions alone.
This is not simply a technical challenge; it is also a question of coordination, standards, and trust and requires collaboration between regulators, financial institutions, and payment system operators. The end-prize is significant; a genuinely global payments network that operates with the same efficiency as the best domestic systems today.
Banks can help when budgets tighten
Another dimension that is becoming increasingly important is the economics of payments in the context of constrained funding environments. As aid budgets come under pressure globally, the cost and efficiency of donor-funded payments are coming under greater scrutiny. According to the OECD, cross-border philanthropic development finance averages ~$10.5 billion annually (between 2017–2024).
In this context, regulated banks have a critical role to play. With established compliance frameworks and direct access to payment systems, banks can often provide more cost-effective and transparent solutions than layered aggregator models, particularly when scale and regulatory certainty are required.
The ‘trust premium’
Trust too is emerging as a central theme across the payments landscape. In the UK and other regulated markets, the safeguarding of client funds by Electronic Money Institutions (EMIs) has come under increasing focus. This has created what might be described as a “trust premium” for regulated banking institutions.
As compliance expectations rise, the ability to offer robust safeguarding within a fully regulated banking framework becomes a differentiating factor — not just for regulators, but for clients seeking security and reliability in their payment partners. Such consistency in standards cannot be underestimated when partnering with national reserve banks and international development organisations.
This convergence of trust, regulation and innovation is also reshaping how institutions position themselves. Payments can no longer be viewed as a standalone function or a simple extension of foreign exchange services. Instead, they are becoming a core component of broader financial platforms that enable clients to operate seamlessly across markets.
For institutions like Crown Agents Bank, this represents a natural evolution, towards an integrated platform-and-payments model that reflects the needs of a global, digitally connected client base.
The future of cross-border payments will not be defined by a single technology or region, but by the ability to connect systems, markets and institutions in a way that builds trust and reduces friction.
Chris Partridge is the Head of Non-Banking Financial Institutions at Crown Agents Bank. To learn more about cross-border payments, email him directly.
[1] Program: Global Remittances Guide | migrationpolicy.org
[2] Beyond Payments: Unlocking Africa’s Second FinTech Wave | BCG
